Correct option is B
Given: AUDEFGRSA
The letters in AUDEFGRSA are: A, U, D, E, F, G, R, S, A
Lets check by option;
Option (a); PSEUDO-GRADE
(This is a 11-letter word PSEUDO-GRADE while there are only 9 letters in the given set of letters AUDEFGRSA) Cannot be formed
(This is a 11-letter word PSEUDO-GRADE while there are only 9 letters in the given set of letters AUDEFGRSA) Cannot be formed
Option (b); SAFEGUARD
All letters are present, Can be formed
Option (c); STAGNATION
(T, T, I, N, N, and O are not there in the given set of letters AUDEFGRSA) Cannot be formed
Option (d); GRANDSON
(N, N, and O are not there in the given set of letter AUDEFGRSA), Cannot be formed
The only word that can be formed using the letters in AUDEFGRSA is SAFEGUARD.
Thus, the correct answer is (b).