Over exaggerated
In the context of this passage, which is talking about how Facebook is attempting to cut down on incorrect, fake, or 'sensationalized' news, the word clearly means news that is not true or over exaggerated in a way that makes it 'click bait'-something that isn't clear, objective content.
Answer:
She wouldnt know if she was getting robbed or if there was a fire or anything dangerous outside or in her house if she uses the powerful earplugs.
A is your answer to the question :)
