The correct option is A 0.125 A
The ammeter coil of resistance 480 Ω and shunt of 20 Ω are connected in parallel, therefore equivalent resistance
R′=480×20480+20=19.2 Ω
Now, resistance of 140.8 Ω and 19.2 Ω are in series, hence total resistance in the circuit,
R=R′+19.2=140.8+19.2=160 Ω
Therefore, current in the circuit (reading by ammeter),
I=ER=20160=0.125 A