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should be 'B'.
Arrange the circles as following:
Three circles in first row, covering full length of 12 inches.
Two circles in second row so that the centre of first cirlce in second row makes an equilateral triangles with the centres of first two circles in first row. Same follows for the second circle in second row.
It's hard to write than explain by a diagram.

The width of the paper = 4+2sqrt(3)
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I think this pic will make the problem more clear, just follow basic geometric rules and calculations you will see that the answer is 4+2*sqrt(3).

I did not provide detailed explanation because if you do it yourself you will remember it forever (as it always happens with me) rather than skimming others answers.

(figures in pic are not drawn to scale, please assume that circles are tangent to the sides of rectangle)
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File comment: Hope it is clear (first time attaching pic)
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should be 'B'.
Arrange the circles as following:
Three circles in first row, covering full length of 12 inches.
Two circles in second row so that the centre of first cirlce in second row makes an equilateral triangles with the centres of first two circles in first row. Same follows for the second circle in second row.
It's hard to write than explain by a diagram.

The width of the paper = 4+2sqrt(3)


Ok, i tried to draw as neat as possible

picture for the above explanation, we need to find AO, part of which is 4,
and the second part is a leg of right triangle with hypothenus equal to 4, and one leg equal to 2, second leg is 2sqrt(3).
The width is 4+2sqrt(3)

I used the picture and explanation above...

nice one



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