Well, don't know how to draw diagrams here but let me see if i can explain through text.
First Approach (Traditional): First place 3 circles back-to-back (touching each other) to make it for 12 inches length. Now for least wastage of paper, you need to put 4th and 5th circles above 3 circles. 4th between 1st and 2nd circles and 5th between 2nd and 3rd. Now you can make equilateral triangle by joining centers of 1st, 2nd, and 4th circles. So total width of the strip will be radius of 4th cricle + height of equilateral triangle + radius of 1st (or 2nd) circle. It equals 2 + (sqrt3/2)4 + 2 = 4 + 2sqrt3
Second approach (quicker): Just think, if we place 4th circle exactly on the top of the 1st circle width of the strip will be sum of diameters of 2 circles 1.e 8. But that is not the case. Since 4th circle is placed between 1st and 2nd, some part of their diameters will overlap. It means our answer should be less than 8. You can eliminate options (C), (D), and (E). Option (A) is too less a value (it is suggesting that 4th circle is actually fitting 3/4th of its diameter between 1st and 2nd circles, which is not feasible). So you are left with only option and that's your answer.
I hope it helps!!!