The answer would be C. (12 x 5) - (s x 2) = 38.
This is because if there are 12 students with 5 pencils per student, we can say 12 x 5. Then, think of the phrase, two pencils lost per student. That would be 2s, or (s x 2). Since it’s lost, we would subtract that amount from 12 x 5.