Step 1: Geometry
In $\Delta APD$, $\tan 45^\circ = a/AP \Rightarrow AP = a$. Similarly, in $\Delta BPC$, $BP = b$.
Step 2: Coordinate geometry
The tops are $D(-a, a)$ and $C(b, b)$ relative to P.
$DE = a+b$ (horizontal distance) and $CE = b-a$ (vertical difference).
Step 3: Calculate distance
$DC^2 = (a+b)^2 + (b-a)^2$.
Step 4: Final calculation
$= a^2+b^2+2ab + a^2+b^2-2ab = 2(a^2+b^2)$.
Final Answer: (C)