Answer:
It is moving away from Earth.
Step-by-step explanation:
As the source comes closer to the observer then we can say that its frequency will increase.
So here we know that

here we know that
v = speed of the star
c = speed of light
now if we know that speed of the star is towards us then the frequency will increase and hence the wavelength will decrease.
So it is known as Blue shift
While if the star is moving away from us then in that case the frequency will decrease and hence the wavelength will increase.
So here it is known as Red Shift.
So here correct answer will be
It is moving away from Earth.