Decoding the question :-
Parallel-outermost rule :-Replace all the outermost occurrences of F.Now what does outermost occurrence mean? it means those occurrences of F which are not appeared inside F as argument.
$F(1,0)$ it's outermost occurrence as didn't appear inside any $F$.So replace it.See out recurrence relation this will be replaced by ${\color{Red} F(2,F(1,0))} *{\color{Blue} F(0,F(1,0))}$ Now here again Red color $F$ and blue color $F$ are outmost occurrences for each other as they are not occurred as argument of some other $F$.(other $F$ which are uncolored are not included as 'outermost occurrence' as they are appeared as argument in some $F$)
So now replace only outermost occurrences(simultaneously). We don't have to replace other occurrences (uncolored) of $F$.
So overall it will become
$[F(3,F(2,F(1,0)))*F(1,F(2,F(1,0)))] *0$ //$F(0,F(1,0))$ will become $0$
Now we can observe some part will never terminate and some part will become $0$ so overall we can say it would be something like $W*0$ and which would result into $0$. So i think Applying parallel-outermost rule will result into $0$ .
Parallel-innermost rule:- Replace all the innermost occurrences of $F$. Here innermost occurrences mean those whose arguments are free from $F$.
Like in $F(1,0)$ argument of $F$ are $1,0$ which are free from $F$ so replace it by recurrence relation and hence it would become
$F(2,{\color{Red} F(1,0)})*F(0,{\color{Blue} F(1,0)})$ Here i colored another innermost occurrences of $F$ which we have to replace again.uncolored $F$ are not innermost occurrences as they contain such arguments which are not themselves function of $F$.
So overall it would become
$F(2,[F(2,F(1,0))*F(0,F(1,0))]) * F(0,[F(2,F(1,0))*F(0,F(1,0))])$
Here we can observe this that everytime we have to expand only function $F(1,0)$ because that's the only function whose arguments are free from any $F$ So in that way , overall it would become $W*W$ type which would result into $W$.
So option A is the correct answer.