Take the center of the target as the fulcrum. The passage specifically states that the diameter is 1 meter. Therefore the radius is 0.5m.
The question stem states that it hits directly right of the center, at the edge. The intention is to make you think that it hit the length of the radius. That's how you ascertain the "r" for bullet one.
I'm assuming you get the rest of the question, if you need help with that let me know.