lolz.
Special relativity questions are always subject to confusion and the answer can differ greatly based on how it is worded.
If you want something interesting wikipedia "twins paradox" then scroll down to "What it looks like: the relativistic Doppler shift"
see here:
http://en.wikipedia.org/wiki/Twins_paradox#What_it_looks_like:_the_relativistic_Doppler_shift
This formula takes into account both time dilation and relativistic doppler effect, and is almost a perfect match for our question.
According to this formula however. The time interval should slow down from 0.5 seconds to 1 second (according to my calculations).
So i suppose D would be the *most* correct, however the hsc physics syllabus doesn't require us to know about the relativistic doppler effect, and merely time dilation (although it is intertwined) and i suppose it should be 0.63seconds (B).