But it is wrong. WHY?
Well, we do not know that those two lines intersect at the center of the circle.
It looks like they in fact do.
But looks are deceiving.
That information is not given in this question.
You must realize that the ‘Graduate Record Exam’ is designed to measure how well one is prepared to do graduate level work. We do not want graduate students to work on the basis of what ‘appears to be the case’, but we want the graduate student to act upon what is known to be the case.