Explanation:
The first statement grant proxy on accounting@localhost to ''@'%' grants the permission to the anonymous proxy user ''@'%' to use the accounting@localhost user as a proxy.
The second statement Select user(),current_user(), @@proxy_user returns the output with three columns:
USER() returns the current user as rsmith@localhost.
CURRENT_USER() returns the authenticated user as accounting@localhost, which is the user that was granted the proxy permission in the first statement.
@@proxy_user returns the current anonymous proxy user as ''@'%'.
Therefore, statement B is true, which states that the user is authenticated as the anonymous proxy user ''@'%'.
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