Well the question is a "which of the following is the major product of this reaction?"
TBR ruled out the one in the OP because "amines react with esters to yield amides, so C is elminated"
The correct answer is H2N-CO-CH2-CH2OH
I don't know how to name the substrate in the reaction, but it is a cyclobutanone, but instead of 2 alpha carbons, there is one alpha carbon and one oxygen in the ring.
It reacts with an NH3.