Every production has exactly one nonterminal on the left-hand side.
$S \rightarrow \alpha$
Therefore, the given grammar satisfies the definition of a context-free grammar.
Hence, it is a Type $2$ grammar.
However, it is not a Type $3$ grammar in the standard linear form because it contains both
$S\rightarrow aS$ which is right-linear,
and $S\rightarrow Sb$ which is left-linear.
A regular grammar must be consistently right-linear or consistently left-linear.
Therefore, the given grammar is Type $2$ but not Type $3$.
So A is false and B is true.
Now consider the language generated by the grammar.
Repeated use of $S\rightarrow aS$ can add any number of $a$'s to the left.
Repeated use of $S\rightarrow Sb$ can add any number of $b$'s to the right.
Finally,
$S\rightarrow b$ terminates the derivation.
Hence every generated string is of the form $a^ib^j, i\geq0,\ j\geq1$.
$\therefore L(G)=a^*b^+$.
Since $a^*b^+$ is a regular language, there exists an equivalent Type $3$ grammar that generates the same language.
Thus,
Answer : B, C
Key point: The type of a particular grammar and the type of the language it generates are not necessarily the same.
A Type $2$ grammar can generate a regular language.