The question should be: "You create a lookup relationship on an external object.
What type of object(s) can be the parent?" Now everything is clear. Answer B.
Answer is B.
In a lookup relationship, the child is a standard/custom/external object, and the parent is either a standard/custom object.
Question is tricky but it asks for a lookup relationship not an external lookup or a indirect lookup.
B is correct : read the question guys, for an external object, what can be the parent of a lookup relationship !
https://help.salesforce.com/s/articleView?id=sf.external_object_relationships.htm&type=5
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