Here it is
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The Ring strange in a cyclobutane is more strong as a cyclopentane. So the Ring will be increased. Solution C is the Main product.

Here H+ protonate OH  outside the ring which will undergo rearrangement of carbocation by expansion of ring from 4-membered to 5 membered .The other O lone pair will make a double bond to give ketone. Check the image for carbocation rearrangement.
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