Even without the options, it is possible to answer this question by simply analyzing the rhyme scheme.
Answer:
The rhyme scheme of this particular excerpt is: XAXA
Step-by-step explanation:
When analyzing the rhyme scheme of a poem, we attribute a letter to the final word of each line. If the words rhyme, then they receive the same letter. If they do not rhyme, we can give them different letters or simply place an X to make it clear.
I went out to the hazel wood, X
Because a fire was in my head, A
And cut and peeled a hazel wand, X
And hooked a berry to a thread; A
Since "wood" and "wand" do not rhyme with one another nor with any other word in the excerpt, they receive X just to make that clear. On the other hand, "head" and "thread" rhyme with each other, so they both receive A. Therefore, the pattern in XAXA.