Answer:
A. The perimeter is more, but the area is less.
Explanation:
You want to know the effect on perimeter and area if the rectangle is cut and rearranged so the pieces overlap.
Area
The overlap means the area of the figure is reduced (by the area of the overlap, inside the dashed lines on the right). This eliminates choices B and D.
Perimeter
The dashed line on the left becomes two solid lines of the same length in the figure on the right, thus the perimeter is increased by twice that dashed line length.
However, the perimeter of the figure on the right is reduced by the perimeter of the part of the figure that no longer sees the outside world: the length of the dashed line on the right.
Since twice the length of the left dashed line is substantially greater than the length of the right dashed line, we must conclude the perimeter has increased in Figure 2 compared to Figure 1. This eliminates choice C.
The perimeter is more, but the area is less.
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