The number in significant figures are related to precision. The last significant figure (the on on the far right), is the number where your uncertainty is.
On a ruler, we can be sure of the numbers indicated by the ticks on it, but if it its between one tick and the next one, we can't be sure because there are no marks.
We can see that the arrow is between the 6th and 7th ticks after 2.1, so the measure is somewhere between 2.16 and 2.17. But we can see it isn't neither of them. Normally, we would add a 5 as the uncertain last significant figure, and we would get 2.165 cm. Notice that we didn't add a zero after the 5, because we are not sure of the value 5, so it must be the last one. However, notice that we don't have this option, but we have a close one: 1.163 cm. Notice again that we didn't put the 0, because the uncertsainty is on "3", so this is the last significant figure.
So, the most correct alternative is A.