RCR Calculation
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The luminaire is 4 ft below a 16-ft ceiling and the work plane is 4 ft above the floor, so cavity height is 8 ft. Room cavity ratio is RCR=5h(L+W)/(LW). Substituting h=8 ft, L=120 ft and W=60 ft gives RCR=1.0, matching option B.

Use the vertical distance from luminaire plane to work plane as cavity height.
Do not use the full ceiling height as h when luminaires are suspended and a work plane is specified.
Use the vertical distance from luminaire plane to work plane as cavity height.