Answer : 1. (C) is the right answer "Intersecting arcs are created and connected".
2. (D) is the right answer "Create a circle from a given center with a compass".
For example to create inscribed square .
Step1) Create a circle from a given center O with a compass.
Step2) Draw a diagonal passing through O and marked as AB on the circle.
Step3) Put compass at A then draw arcs above and below O. Similarly draw arcs from B intersecting arc formed by A.
Step4) Create a line across both the point of intersection by using a straightedge and intersects the circle at C above and t D below center O.
Step5) Join all the four points on the circle which would become the vertices of the square ACBD.