The correct option is
A Will
The use of the word, 'generally' indicates that the verb in the sentence talks about a usual or characteristic activity. The auxiliary verb, 'will' is used to express a characteristic habit. The clause, 'Children will run after a flying butterfly' means: 'Flying after butterfly is a characteristic activity of children.' This fits in well with the use of the word, 'generally', which conveys a similar meaning. Hence, option A is correct.
Option B: The auxiliary, 'shall' is used to denote a future activity. (Eg: 'I shall visit the hospital tomorrow'.) It is also used to express a command (Eg: 'He shall not talk in my presence') or promise (Eg: 'I shall definitely complete this work') or threat ('Eg: You shall be punished for this'). The given sentence does not denote a future activity or a command or a promise. Hence, option B is not correct.
Option C: The modal, 'could' is used to express an ability in the past (Eg: 'I could swim across the river when I was six years old'). It is also used to express permission in the past (Eg: 'He told me that I could go out'). However, this tense is not applicable to express a characteristic habit.
Option D: The auxiliary 'does' is used in an affirmative sentence to emphasize the verb. It is used when the subject is singular. Here, the subject, 'children' is plural. Hence, this option is not correct.