I put this same answer on a different question.
Hi there! So among the options, there are:
Organisms will lose their habitat
Groundwater in the area will be reduced
More wood will be available for building homes
Runoff will be reduced once the streets are paved
Think about it. This is asking how the water cycle will be affected.
It wouldn't have anything to do with organisms, this is about water. It wouldn't be involving wood, since we're talking about water.
A and C are no longer options.
The answer is B, Groundwater in the area will be reduced. It took me a bit on this one, too, since it's a bit tricky. I also got it right on my exam and I do FLVS, this is in Earth Space Science.
Have a lovely rest of your day!