The correct option is B (x−2)2+(y+2)2=5
Equation of angle bisectors are |x+y−2|√12+12=|x−y−2|√12+12
i.e., x=2 and y=0
Now, centre cannot lie on y=0 because then chord of contact from the origin will always be parallel to y−axis.
So, let the centre be (2,α).
Then, equation of circle is
(x−2)2+(y−α)2=5
⇒x2+y2−4x−2αy+α2−1=0
Chord of contact, T=0 from (0,0) is
0⋅x+0⋅y−4(x+02)−2α(y+02)+α2−1=0
⇒2x+αy−α2+1=0
Slope =tan45∘=1
⇒−2α=1⇒α=−2
Hence, equation of the circle is (x−2)2+(y+2)2=5.