Answer:
a. Fred's margin of error is larger than Ted's.
Step-by-step explanation:
Margin of error of a confidence interval:

In which z is related to the confidence level(the higher the confidence level the larger the value of z)
is the standard deviation of the population and n is the size of the sample.
From this, we have that:
A higher confidence level leads to a larger margin of error.
A larger sample size leads to a smaller margin of error.
In this question:
Same confidence level.
Fred's sample is smaller, so his margin of error will be larger.
The correct answer is given by option a.