Actually Welcome to the Concept of the Statistics,
If we see here, The Andrew is working for 20 hours and his pay for 20hours is, $175
so for 1 hour, he gets = 175÷20 => $8.75 per hour
, so now after 1 year, his pay increases by $1.05 per hour, then we have to add this new amount of pay in his old amount, so that we can show that his pay is actually INCREASED, so the new pay is given as,
$8.75 + $1.05 (per hour)= $9.80
so now his total pay is given as,
E= 9.80h
Option D.) is correct