Statements 2 and 3 contradict as if both items cost less than $15, the most money spent on either individually would be $14.99, and together would add up to $29.98, and that is at their maximum price, therefor Val couldn’t have spent $34 on both items together.
Given the choices, the best fitting answer would be the first one. "2 loaves of bread and 4 batches of muffins". I figured this out by multiplying the amount of flour and sugar required for each loaf of bread and batch of muffins