A, because como estas is familiar, como esta usted is formal (someone older than you)
Answer: B. estar
To form the imperfect continuous you use imperfect tense of the verb <em><u>estar</u></em> + the present participle of the verb that tells what you were doing.
Example: Los niños <u><em>estaban jugando</em></u> fuera y los vecinos <u><em>estaban hablando</em></u> en voz baja.
Translation: The children were playing outside and the neighbours were speaking quietly.
<h2><em>Spymore</em></h2>
Hello,
In this passage you will use the following:
"Yo voy a 1. (la) clase de etudios sociales y tengo 2. (los) libros de geografía. ¿Tienes tú 3. (unos) bolígrafos para 4. (las) clases de inglés y cálculo?"
1. "<em>la"</em> agrees with <em>" clase" </em>
2. "<em>los" </em>agrees with <em>"libros"</em>
3. "<em>unos " </em>agrees with <em>"bolígrafos"</em>
4. "<em>las" </em>agrees with "<em>clases"</em>
I hope this helps. I might be wrong but that's the way I understood the passage.
Have a good day!