You are correct. The higher the standard deviation is, the more spread out the data set will be. Nice work.
Answer to the question is: I
Answer:
The given points are

The setting would have a interval or 2 units above and below the minimum and maximum of each coordinate.
The given maxium horizontal coordinate is 0.
The given minimum horizontal coordinate is -13.
The given maximum vertical coordinate is 3.
The given minimum vertical coordinate is -7.
Now, we extend each maximum and minimum value by 2 units to create the setting.
So, the setting is

With a scale of 2 units.