Carry and Auxiliary Carry Flags
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C2H + 3DH = FFH. There is no carry out of bit 7, so CY=0. In the lower nibble, 2H+DH=FH, which also produces no carry from bit 3 to bit 4, so AC=0. The flag pair therefore corresponds to option A.

CY checks carry out of bit 7; AC checks carry from bit 3 to bit 4.
Do not set AC merely because the lower-nibble result is F; AC requires a carry beyond F.
CY checks carry out of bit 7; AC checks carry from bit 3 to bit 4.