A circular coil expands radially in a region of magnetic field and no electromotive force is produced in the coil. This is because
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When a circular coil expands radially in a region of magnetic field, induced emf developed is
rate of change area
Here, magnetic field B is in a plane perpendicular to the plane of the circular coil.
As
, magnetic field must be in the plane of circular coil so that its component perpendicular to the plane of the coil, whose magnitude is decreasing suitably so that magnetic flux linked with the coil stays constant then

So both options and are correct.
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