Correct choice is (a) area of unconnected leg
To elaborate: β = 1.4 – 0.076[(bs/Lc)(w/t)(fy/fu)] , where fu and fy are ultimate and yield stress of material, w and t are size and thickness of outstanding leg respectively, bs is the shear distance from edge of outstanding leg to nearest line of fasteners, Lc is the length of end connection measured from centre of first bolt hole to centre of last bolt hole in the end connection.