This is a standard exam question pertaining to the kinetics material that is typically presented in a first year general chemistry course. Usually the coverage is restricted to discussion of zero, first and second order kinetics and this is what gets tested on exams. From the photo of the exam question, the decay is apparently first order, i.e., $$\mathrm C(t) = C(0)e^{-kt}$$ where $\mathrm C(t)$ is the molar concentration of whatever is decaying away, $\mathrm C(0)$ is the initial molar concentration (i.e., at $\mathrm t = 0$) of whatever is decaying away, and $k$ is the decay rate constant in units of $\mathrm s^{-1}$. In the present case, $\mathrm C(0) = 0.4 M.$
But, is the decay really exponential? To determine this, without curve fitting data pairs or linearizing the plot, it suffices to see if the half-life, $\mathrm t_{1/2}$, is constant. From the photo of the graph, the initial concentration declines to $\mathrm 0.2 M$ at about $\mathrm t = 13 s$. Note that there are $\mathrm 10$ dash marks every $\mathrm 10 s$ along the time axis, so this is an aid, albeit imperfect, in estimating times along the time axis. The concentration declines to $\mathrm 0.1 M$ at about the $\mathrm 26 s$ mark and further declines to about $\mathrm 0.05 M$ at about the $\mathrm 39 s$ mark.
So, $\mathrm t_{1/2}$ is constant and approximately equal to $\mathrm 13 s$. Therefore, the decay process is a first order exponential, as shown in the equation at the top. Note that the only other alternatives, in the restricted context of typical course material coverage and exam coverage of said material, are zero and second order decays. But these do not have constant half-lives: for a zero order decay, every subsequent half-life is halved and for a second order decay, every subsequent half-life is doubled. The graph clearly eliminates these two possibilities. It is also obvious that the decay cannot be first order since then the concentration versus time plot would be linear. If the decay was second order, the concentration could not be down to $\mathrm 0.1M$ in less than $\mathrm 30s$, even if the first $\mathrm t_{1/2}$ was clearly underestimated as $\mathrm 10s$.
The relationship between $\mathrm k$ and $\mathrm t_{1/2}$ is $\mathrm k = (ln2)/t_{1/2}$. This is easily verified by substitution into the exponential equation, resulting in $$\mathrm C(t = t_{1/2}) = C(0)/2$$ Hence, with $\mathrm t_{1/2}$ estimated as $\mathrm 13s$, the rate constant estimate is $\mathrm k = 0.053 s^{-1}$.
To find the initial rate of decay, simply differentiate the exponential equation and evaluate it at $\mathrm t = 0$. The derivative is $$\mathrm dC(t)/dt = -kC(0)e^{-kt}$$ so at $\mathrm t = 0$, the slope is simply $\mathrm -kC(0)$ and the magnitude of the slope is $\mathrm kC(0)$. With $\mathrm k = 0.053 s^{-1}$ and $\mathrm C(0) = 0.4 M$, this yields $\mathrm 0.021 M s^{-1}$ as the initial rate magnitude. Rounded to one significant figure, which is all this exam problem deserves, yields $\mathrm = 0.02 M s^{-1}$. This is exam answer A.
One last thing: a small error in estimating the half-life will not matter because the initial decay rate is inversely proportional to it, so it would have to be high by a factor of two in order to get answer B on the exam.