The correct answer to this question is B, It is on the book. This type of question could be used to test two different areas. The first would be grammar. If the answers including different variations of "It is on the book" but stated in incorrect sentence structures, it could test the test taker on proper grammer. Secondly, it could test how well someone uses their analyzation skills.
For most, the image provided gives a clear answer, but someone may look too fast and answer to quickly. This could lead them to answering incorrectly. For questions with illustrations or images, those two should be used properly to give the answer.
The correct answer is B. Based on the image provided, the apple is on top or on the book. On is the correct preposition to be used as the indicated location of the apple that is on the surface of the book. If the apple is tucked in between the pages of the book, the correct sentence will be the apple is in the book.
We use the preposition on to indicate the location of object A at the surface of object B. We cannot properly use the apple is near the book because since the apple is directly touching the apple, we can only use either on, in, under or beside depending on its location at the diagram. We will only use the preposition near when the apple and the book do not share the same spot.