The correct option is B Not all competitive exams allow the use of a calculator
Note that there is a 'but' in the sentence immediately following the clause given. So the option that starts with "though" isn't correct.
What do competitive exams allow/not allow? In answer to this question, "the use of a calculator" is the correct wording of the response. Both "using calculators" and "using of calculators" are incorrect.
The quantifier 'every' stresses all the members of the complete group. Here, we want to say that only some (not all) exams allow the use of a calculator. So option c is also incorrect.
The correct option is (b). Not all competitive exams allow the use of a calculator, but where they are permitted, there are restrictions on the models allowed.