(a) That's wrong. 

You were asked to select the correct statement.

It is correct to say that, in these circumstances, the breach does not deprive B of the intended benefit of the contract and B must accept the fence and pay for it, less the cost of moving the gate. 

It is incorrect to say that, in these circumstances, B may reject the fence and is not obliged to pay any part of the agreed price, but that A is entitled to remove the fence.

It is incorrect to say that, in these circumstances, B can keep the fence and have the gate moved at his own cost but is not required to pay any part of the agreed price to A.

Give yourself  no marks for this answer.

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