SOLUTION
First, let us use the FOIL method to expand the binomial.
[tex]\left(a+b\right)\left(a-b\right)[/tex]
The FOIL method means
F- we multiply the first terms together. The first terms are a and the other a, we have
[tex]a\times a=a^2[/tex]
O - we multiply the outside terms, which are a and the other -b, we have
[tex]a\times-b=-ab[/tex]
I - we multiply the inside terms. The inside terms here are b in the first part and a in the second part, we have
[tex]b\times a=ab[/tex]
And lastly we multiply the last terms which are b and -b, we have
[tex]b\times-b=-b^2[/tex]
Combining all we have
[tex]a^2-ab+ab-b^2[/tex]
The short cut we can use, we say
[tex]\begin{gathered} \left(a+b\right)\left(a-b\right) \\ a\left(a-b\right)+b\left(a-b\right) \\ that\text{ is using the first two terms to multiply the second two terms} \\ we\text{ have } \\ a^2-ab+ab-b^2 \end{gathered}[/tex]
So the facts I included in my response are
Multiply the first, outside, inside and last terms of the binomial (the FOIL method).
Multiply a times a, a times -b, b times a and b times -b (the short cut).
Hence the first and second options are the answers