Instead of dividing by 0.90 directly, this can be solved by thinking in terms of the ratio between dry material and moisture in the final sized yarn.
The starting oven-dry warp yarn is 100 kg. With an 8% add-on of size (calculated on the dry weight), the size added is
\( 8\% \times 100 = 8 \text{ kg} \), so the total dry (sized) mass, before any moisture is picked up, is
\[ 100 + 8 = 108 \text{ kg} \]
Now, the finished sized yarn has an overall moisture content of 10%, meaning that for every 100 kg of finished yarn, 10 kg is moisture and 90 kg is dry material. So the ratio of moisture to dry material in the final yarn is
\[ \frac{\text{moisture}}{\text{dry}} = \frac{10}{90} = \frac{1}{9} \]
Since the dry portion of the finished yarn is the 108 kg already calculated, the moisture picked up is
\[ \text{moisture} = \frac{108}{9} = 12 \text{ kg} \]
Adding this moisture to the dry sized mass gives the final mass of the sized yarn:
\[ 108 + 12 = 120 \text{ kg} \]
Therefore, the correct answer is 120 kg.