The correct option is D Acidic
Let us try and decode the hint shall we?
The reaction is hydrolysis. Now what is hydrolysis? In simple terms, it is the chemical breakdown of a chemical compound using water. Now let us try and use the information available:
FeSO4+2H2O⇌Fe(OH)2+H2SO4
Given that the products of hydrolysis contains a weak base and a strong acid, the concentration of H+ will be much larger and thus the solution is acidic.