An increase of 100% in the value of (rh) means the value doubles. When that doubled value is squared, the new area is 4 times the old area.
The question asks how many times GREATER the new A is than the old A. 4 times AS LARGE AS is a 300% INCREASE, which is 3 TIMES LARGER THAN.
So the grammatically correct answer is 3 (answer choice B). But it is very possible that an answer key for this problem will incorrectly say 4 (choice C).