We are given the state graph and the heuristic values \( h \). The A* algorithm expands nodes based on the f-cost, where:
\[
f(n) = g(n) + h(n)
\]
where \( g(n) \) is the cost to reach node \( n \) and \( h(n) \) is the heuristic value.
The f-cost calculations are:
\( f(S) = 2 \), \( f(A) = 4 \), \( f(E) = 10 \), \( f(B) = 6 \), \( f(C) = 10 \), \( f(D) = 9 \), \( f(G) = 10 \).
The order of expansion of nodes is based on their f-cost values. Thus, the nodes are expanded in the following order:
\( S, A, E, B, C, D, G \)
Thus, the correct answer is Option (C).