As per the rule-resolution algorithm, first, it checks the rule as per the application rulesets hierarchy on considering the higher level of the class hierarchy. As per the above question, am considering the order of application rulesets are
1. First, it checks the rule in TGB-Expenses-Work Expenses: 01-01-05, but the status of the rule is withdrawn. As it was withdrawn, even the rule is present in the lower versions of the same class, it won't be considered as per the rule resolution.
As per the above question, the rule is not picked by the rule-resolution in the TGB-Expenses-Work Expenses and in the TGBCatalog rulesets as well.
2. As per the class hierarchy, it checks in the TGB-Expenses (Expenses:01-01-03) and it gets executed.
The answer is (C. TGB-Expenses.PopulateLineItems (Expenses: 01-01-03).