I'm assuming that your question actually wants you to prove the existence of $\sqrt{3}$ as a limit of finite decimals, in which case none of the answers are correct, because they all work under the assumption that $\sqrt{3}$ exists.
I'll assume that $\mathbb{R}$ has the least upper-bound property (as well as the Archimedean property, ordering, etc.), which is usually what you're given in these types of problems. First, $3$ is obviously an upper bound for $S = \{a\in D\mid a^2 \le 3\},$ so $S$ has a least upper bound, say $s.$ Suppose that $s^2 > 3.$ Then let $\epsilon = \frac{1}{n} < \frac{s^2-3}{2\cdot s};$ the existence of $n$ is guaranteed by the Archimedean property. We then have $(s-\epsilon)^2 > s^2 - 2s\epsilon > s^2 - (s^2 - 3) = 3,$ so $(s-\epsilon)$ is an upper bound for $S$ as well, which is a contradiction since $s$ is the least upper bound of $S.$
Now, suppose $s^2 < 3.$ Let $\epsilon < \min\left(1, \frac{3-s^2}{2s+1}\right).$ It's not hard to show then that $(s+\epsilon)^2 < 3.$ The point now is that there exists a rational number $r = \frac{p}{q}$ in the interval $(s, s+\epsilon).$ This is an exercise that you should have already proven (it uses the Archimedean property), so I will just cite it here. Note that there exists $n$ such that $10^{-n} < r - s.$
Since we can perform (approximate) division (for a finite number of digits - you should verify division actually works in the reals as well, identifying an infinite string of 9's after the decimal point with 1), perform the division $p$ divided by $q$ up to the $n$-th digit after the decimal point; call this truncated decimal $r'$. What follows the $n$-th decimal is strictly less than $10^{-n}$ (another thing to prove). Hence, $s < r' \le r < s+\epsilon,$ from which it follows that $r' \in S.$ Then, $s$ is not an upper bound of $S$ since $r' \in S,$ contradiction.
By the Trichotomy Property of the reals, $s^2 = 3$ since $s^2 \not< 3$ and $s^2 \not> 3.$