The answer should be the second option as it gives a good reason as to how multiplying it by five is the best choice. It could also be the first option, but I think the second option is more apt.
The idea of using 4 because it's a factor is the wrong choice. If the equation were 5x = 88 and you divide by 4, you aren't getting a single 1x alone. So the "divide because it's a factor" choice is wrong.