C.
No, it is not fair, and the reader better use discretion while viewing it.
There are 3 possible outcomes of each game.
So, the tree will start with 3 leaves, and each leaf will further be divided into 3 leaves. Thus the total number of leaves in the tree diagram will be 3 x 3 = 9 leaves.
Option A correctly represent this situation.
The fraction is 12/1000 which simplified to 3/250. The percentage is 1.2%.