We can draw both points on the plane to get a better understanding of the problem.
Notice that a reflection over the y-axis would not produce the image point K' (the coordinates of K' should be something like (-5, a) if that was the case). Similarly, a reflection over the x-axis of K would produce a point of the form (b,-6), which is not the case.
Therefore, we need to use only translations to transform point K into point K'. For that, we need to move point K 12-5=7 units to the right and 6-(-2)=8 units down.
The answer is 'horizontal shift to the right by 7 units and vertical shift down 8 units'. Option D is the answer.