Solution:
The real weight is 10kg;
But the digital scale reports 8.975kg.
Thus;
Accuracy refers to the closeness of the measure to the real value, while precision, in this case, refers to the level of significant figures that the scale report.
The fact that the scale reports the number with 4 significant figures means that it is very precise, but we still observe that the report is not so close to the real value, thus, it means that the scale is not accurate.
FINAL ANSWER: A. The scale is precise but not accurate