And why not multiply this by 2. So 36 pairs are possible for x1 & x3 in the 6 digit code. But the 36 pairs can also be flipped => (x1,x3) = 1,8 will be different from 8,1
I wouldn't focus on numerical answer options and to be honest, I wouldn't be able to identify that 9^4 = 6561. It is not a number I come across in GMAT much.
As for solving the question, I see that sum of 1st and 3rd digits is the 5th digit which means that sum of 1st and 3rd digits much be 9 or less.
If the 1st digit is 1, the 3rd digit could be anything from 1 to 8.
If the 1st digit is 2, the 3rd digit could be anything from 1 to 7.
and so on... We see the pattern here.
The first digit could be anything from 1 to 8 and the second digit would take 8 values or 7 values or 6 values ... 1 value.
Hence, we get 8 + 7 + ... + 1 = 8*9/2 = 36 possible values for 1st and 3rd digits. The 5th digit is defined once we pick values for 1st and 3rd digits.
The same will be applicable to 2nd, 4th and 6th digits too.
So number of ways = 36 * 36 which ends with a 6 and hence answer is (C)