The TCP window scale option is an option to increase the receiver window size allowed in Transmission Control Protocol above its former maximum value of 65,535 bytes.
65,535 bytes = 64KB = $2^{16}$ B
The scaling option allows us to increase the window size from 64KB to 1 GB!
When the bandwidth-delay product exceeds the value of 64K or $2^{16}$, we use scaling.
Bandwidth must be in bytes/sec and delay (RTT) must be in ms.
- What happens when we scale?
Window size increases from 64KB to 1GB, ie, from $2^{16}$B to $2^{30}$B
Now, coming to the question:
Calculating α
131070 * RTT = $2^{16}$
=> 131070 * RTT = 65536
=> RTT = 500 ms
Calculating β
Window size would be increased from $2^{16}$B to $2^{30}$B
i.e. from 65536 to 65536 * $2^{14}$B
Option C