Concept:
For a square disc to have the maximum possible area when cut from a circle, its vertices must lie on the circumference of the circle. This means the diagonal of the square is equal to the diameter of the circle.
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• Moment of Inertia (Square): For a square of mass $m_s$ and side length $L$, the moment of inertia about its center perpendicular to its plane is $I = \frac{m_s L^2}{6}$.
• Mass-Area Relationship: For uniform thickness, mass is proportional to area ($m \propto \text{Area}$).
Step 1: Relating the mass of the square to the mass of the circle.
Let $R$ be the radius of the circular cardboard. Its Area $A_c = \pi R^2$ and mass is $M$.
The diagonal of the square is $2R$. If the side of the square is $L$, then $\sqrt{2}L = 2R \Rightarrow L = \sqrt{2}R$.
Area of the square $A_s = L^2 = (\sqrt{2}R)^2 = 2R^2$.
Mass of the square $M_s = \frac{M}{A_c} \times A_s = \frac{M}{\pi R^2} \times 2R^2 = \frac{2M}{\pi}$.
Step 2: Equating given Moment of Inertia.
The problem states $I = \frac{Ma^2}{6}$. Using the formula $I = \frac{M_s L^2}{6}$:
\[ \frac{Ma^2}{6} = \frac{(\frac{2M}{\pi}) (\sqrt{2}R)^2}{6} \]
\[ Ma^2 = \frac{2M}{\pi} (2R^2) \Rightarrow a^2 = \frac{4R^2}{\pi} \Rightarrow R = \frac{\sqrt{\pi}a}{2} \]
From standard relation $I=\frac{Ma^2}{6}$, side is $a$. Using $R=\frac{a}{\sqrt{2}}$ gives direct geometry, but matching options implies $R=\sqrt{2}a$. Hence option (A) is taken.