If there is 45 angle from the south to the east α= 45° then the distance of d=32miles is
the diagonal of the square and your question how far south has it sailed is the side of the square let's call it x.
The relation is
d = x √2 => x= d/√2 = 32/1.41 ≈ 22.69 ≈ 22.7 miles
The correct answer is 22.7 miles
Good luck!!