The correct option is B False
A noun clause is a dependent clause that functions as a noun. It usually
begins with what, whatever, whom, that and other such relative
pronouns. A noun clause can act as a subject, object, predicate
nominative or object of a preposition, in a sentence.
The noun clause "That she passed the test" functions as the subject of the verb "shocked" in the given sentence, as it performs the action 'shocked'. The object of the verb "shocked" is "me".
Hence the statement is false and option B is correct, A is incorrect.