Header field = $(1010)_{2}$ = $10$,
So actual header length = $10*4$ = $40 B$
MTU = $160 B$ = header + data = $40 + x => x = 120$
Now $120$ is also divisible by $8$ so we can use it fully
data in the incoming packet = $1850 – 40 = 1810 B$
So number of fragments = $\left \lceil \frac{1810}{120} \right \rceil$= $\left \lceil 15.08 \right \rceil$= $16$
Option C is the correct answer
Similar question in GATE : https://gateoverflow.in/8255/gate-cse-2015-set-2-question-52