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I think 3rd option is right but they mentioned

The binary representation of -39 is : 1011001
2's complement of 1011001 will be: 1's complement of 1011001  + 1
=> 0100110 + 1 = 0100111 = 39

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(39)10 can be represented into 8-bit binary as 

128   64   32   16   8   4    2   1

  0      0     1     0    0    1   1    1 

                                                      (taking 1’s compliment we get)

  1      1     0     1    1    0   0    0

                                         +    1 (adding 1 to take 2’s complement)

  1      1     0     1    1    0   0    1

This matched option C and not B. In option B 7 bits are used.

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