This question is about a major product-safety scandal that hit global headlines in 2007. It tests recall of a specific corporate news event rather than a general concept, so the key is remembering which company was at the centre of it.
Given the scale of the crisis, the millions of units recalled, and the direct link to toxic lead paint from Chinese suppliers, the company in question is clearly Mattel.
Let's summarize:
The correct answer is option (B), Mattel Toys.