Answer:
The correct option is A. Translate the graph of y = |x| two units down.
Explanation:
The given function is
....(1)
The transformation of an absolute function is defied as
.... (2)
Where, a is horizontal shift and b is vertical shift.
If a>0, then y=|x| shifts a units left and if a<0, then y=|x| shifts a units right.
If b>0, then y=|x| shifts b units up and if b<0, then y=|x| shifts b units down.
On comparing (1) and (2), we get

Since b=-2<0, therefore the graph of y = |x| two units down. The correct option is A.