The correct option is D The current will change direction as the electron passes by
As the electron moves from A to B, the direction of current will be from B to A. When an electron comes closer to the loop, the magnetic field increases and hence the direction of the induced current will be such that it opposes the change, i.e., the current will be anti-clockwise. But when the electron goes far from the loop, the magnetic field decreases and hence, the induced current in the loop will be clockwise. Thus, the direction of the induced current in the loop will change as the electron passes by.
Hence, the correct answer is option (4).