The correct option is A (a,a)
Let r be the radius of the circle. Since it touches the coordinate axes and the line x−y=a√2 the coordinates of the centre of the circle can be (r,r),(−r,−r) or (r,−r)(Asr>0 and the line x−y=a√2 meets the coordinates axes at (a√20) and (0,−a√2)).
If the centre is (r;r) or (−r,−r) then ∣∣∣−a√2√1+1∣∣∣=r⇒r=a
So (a,a) can be the coordinates of the centre of the circle, check that if the centre is (r,−r)
we have ∣∣∣r+r−a√2√2∣∣∣=r⇒r=(√2±1)a