The correct option is
A when
The two activities in the two clauses ("walking" and "saw") happened at almost the same time/ one just immediately after the other. Hence, they need to be linked by a conjunction indicating time.The words, "while" and "when" are subordinating conjunctions which indicate the time of a certain action. The main difference between the two words is that "when" usually means "at the same time" or "immediately after a specific point of time". The word, "while" means "during some (usually extended) period of time".
Option A: The word, "while" is usually followed by a clause in present/ past continuous tense. In the given example, the clause which follows the blank is "I saw a car crash". It is in simple past tense and not in past continuous tense. Hence, the conjunction "while" is incorrect.
Option B: The word, "when" is usually followed by a clause in simple present/ past tense.As the clause, "I saw a car crash", is in simple past tense, the appropriate conjunction is "when" and option B is correct.
Option C: The word, "that" is a subordinating conjunction which introduces a clause which gives further information. "That" is not a conjunction which indicates time. Hence, this option is incorrect.
Option D: The word, "there" is an adverb which is used to indicate position/ place of a noun. "There" is not a conjunction which indicates time. Hence, this option is incorrect.