Answer:
The true statement is : Hugo’s margin of error will be exactly 2 times as large as Lily’s margin of error.
Explanation:

And value of sigma is same as the response in both the cases is 85%
Hugo's margin of error : n = 100

Lilly's margin of error : n = 400

Hence, the correct statement is : Hugo’s margin of error will be exactly 2 times as large as Lily’s margin of error.