I would choose the last option but it may be wrong.
Why would it be the last option? Well, there are certain states that have no income tax, which are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. (could be C since it says "Certain states have a flat state tax")
Like I said, it could be wrong but I love helping people, even if my answers aren't correct! It's a favorite hobby of mine, if it's wrong, tell me. I'll try to fix it for ya!
Have a great day!