The first law of thermodynamics states ΔU = q + w, where ΔU is the change in internal energy of a system, q is the heat entering or leaving the system (positive if it is entering the system, negative if it is leaving), and w is work done by the system or on the system (positive if work is being done on the system, negative if the system is doing work on its surroundings).
(a) The problem gives us the change in internal energy, ΔU, -1.65 kJ, as well as change in heat, -1.87 kJ (notice the negative, heat is leaving the system into the surroundings).
Therefore our equation is ΔU = q + p = -1.65 = -1.87 + w.
Solving for w gives us 0.22 kJ.
(b) As stated before, work positive if work is being done on the system and negative if the system is doing work on its surroundings since it represents energy in the form of work in the system. Doing work will transfer that energy out of the system making the sign negative, and having work done on the system transfers that energy into the system, making the sign positive.
Since the sign of 0.22 is positive, that means work is being done on the system by its surroundings. This means the volume of the gas will decrease. If work were negative, the volume would increase.