Final answer:
The area of the larger square is 4 times greater than the area of the smaller square. Therefore, the correct answer is option A) The area of parallelogram 1 is 4 square units greater than the area of parallelogram 2.
Step-by-step explanation:
The area of the larger square is 16 square inches, while the area of the smaller square is 4 square inches. To compare the areas of the parallelograms, we can write a ratio of the larger square's area to the smaller square's area: 16/4 = 4. This means that the area of the larger square is 4 times greater than the area of the smaller square.
Therefore, the correct answer is option A) The area of parallelogram 1 is 4 square units greater than the area of parallelogram 2.