The correct choice is (d) All functions of 4 variables
For explanation: A 2^n:1 MUX can implement all logic functions of (n+1) variables without any additional circuitry. Thus 8:1 MUX can implement all logic functions of (3+1) variables, for 4 variables there are 16 possible combinations. So to use 8:1 MUX use 3 inputs as select lines of MUX and the 4th input as input of MUX.