The correct option is B 9π32 sq units
Let the required circle touches parabola y=x2+1 and y=x2−1 at A and B, respectively.
Here, both parabolas are symmetric w.r.t. y=x
Tangents at A and B will be parallel to y=x
For y=x2+1
Slope of tangent =2x1=1
⇒x1=12
⇒y1=54
So, A≡(12,54)
For y2=x−1
Slope of tangent =12y1=1
⇒y1=12
⇒x1=54
So, B≡(54,12)
⇒AB=3√24
Radius =12AB=3√28units
Area =9π32 sq. units