To answer this question, it would be useful to recall the definitions of a centralised database and a distributed database:
- A centralised database is a database that is stored at one central location but is available for use by all computers on the network.
- A distributed database is a database that is geographically dispersed among different computers across different physical locations but acts as a single database.
The question states that the company's database is located in Sydney. This means that the database is physically stored at one central location (in this case, Sydney). The database is therefore centralised, and the answer is (A).
I think that your reasoning may have used the fact that the database is accessed from offices in various countries to infer that the database is distributed, which is not true for this question. It seems that this is a trick whereby students would assume that the database being accessed from offices in different countries means that it is a distributed database, and they would as such miss the fact that the database exists only in one location. The computers that would be used to access the database from other countries do not constitute part of that database.
I hope this helps!