Right choice is (a) The output of an encoder is a binary code for 1-of-N input
For explanation I would say: An encoder is a combinational circuit encoding the information of 2^n input lines to n output lines, thus producing the binary equivalent of the input. It performs the opposite operation of a decoder which results in 2^n outputs from n inputs. Thus, an encoder different from a decoder because of the output of an encoder is a binary code for 1-of-N input.