Final answer:
The object that appears further away but casts an image of identical size on the retina is larger in actual size due to the principles of monocular depth perception.
Step-by-step explanation:
When two objects cast images of identical size on the retina but are perceived to be at different distances due to monocular cues, we can deduce that the object that appears to be further away must actually be larger. This conclusion is drawn based on the principle that if two objects produce the same-sized retinal images, the one that seems further away has to subtend a larger angle at the eye, which means it must be larger in actual size. Therefore, the correct answer to the student's question would be A) The object that appears further away is larger in actual size.