MadeEasy Subject Test 2019: Digital Logic - Number Systems

Question

Even after seeing the solution I was unable to understand this question:

Can any one tell whats happening here:

Comments

Booth Multiplication..

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you have to give the recorded multiplier........now -113 is smallest so will be multiplier..now convert the number into two's complement form and then apply short cut(appending zero at first and then 00->0 01->-1 10->+1 and 11->0 ) you will get the desired answer

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@Navneet Kalra -121 is smaller? and please ellaborate the answer.