I am not understanding why this is the correct answer. From the graph, between 20 and 40 seconds, isn't temp const? And from 120C to 80C, there is a drop in temperature. So how is entropy more in the first instance?

Is it because as temp drops, entropy is decreasing, so no change at all in temp is by definition going to be greater than a decrease in entropy?

Focus on change in state of matter also.
It is a cooling curve and state changes from gas to liquid in 20 to 40 sec.