The correct option is D Infintely many
Let the perimeter of the circles outside the red border be x.
Since the perimeter of the yellow border has to be greater than 31.4 inches, so, we can say x > 31.4
Here, there is no limit regarding the perimeter of the yellow border.
We can have any number of such borders if we keep increasing the size.
Hence, there are infinitely many number of circles that can be drawn outside the red border.