There is another approach that might be taken that largely avoids the issue of factorization. While it is tempting upon seeing the expressions $ \ \alpha + \beta \ , \ \alpha^2 + \beta^2 \ , \ \alpha^3 + \beta^3 \ $ to consider an argument based on Newton's identities, that leads to a great deal of writing (and a bit of interpretative complication). Instead, we might deal with this as a "logic puzzle" by working with the coefficients of the quadratic equation.
The only requirement on the coefficients is that $ \ a \ \neq \ 0 \ \ . $ We can start with the case of $ \ c = 0 \ \ $ only, keeping in mind that $ \ \alpha + \beta \ = \ -\frac{b}{a} \ $ and $ \ \alpha · \beta \ = \ \frac{c}{a} \ \ . $ This tells us that one or both of $ \ \alpha \ $ and $ \ \beta \ $ must equal zero, but the sum of the zeroes requires that one of these be equal to $ \ -\frac{b}{a} \ \ . $ (We also see this by observing that the quadratic equation in this case is $ \ ax^2 + bx = 0 \ \ . $ ) The expressions under discussion then have one term equal to zero, making them fall into the geometric progression $ \ -\frac{b}{a} \ , \ (-\frac{b}{a})^2 \ , \ (-\frac{b}{a})^3 \ \ . $
If we have $ \ b = 0 \ \ $ , then $ \ \alpha + \beta \ = \ 0 \ \Rightarrow \ \alpha \ = \ -\beta \ \ , $ in which case $ \ \alpha^3 + \beta^3 \ = \ 0 \ \ , $ but $ \ \alpha^2 + \beta^2 \ \neq \ 0 \ \ $ generally. The only exception is to have also $ \ c = 0 \ \ , $ which leads to $ \ \alpha \ = \ -\beta \ = \ 0 \ $ and the trivial geometric progression $ \ 0 \ , \ 0 \ , \ 0 \ \ . $ (The quadratic equation has "collapsed" to $ \ ax^2 \ = \ 0 \ \ . ) \ $ So $ \ b = c = 0 \ $ can be considered a subsidiary case of $ \ c = 0 \ \ . $
If we have for the discriminant $ \ \Delta = 0 \ \ , $ then the quadratic equation has the "double root" $ \ \alpha \ = \ \beta \ = \ -\frac{b}{2a} \ \ . $ We again obtain a geometric progression
$$ \alpha + \beta \ = \ 2 · \alpha \ = \ -\frac{b}{a} \ \ \ , \ \ \ \alpha^2 + \beta^2 \ = \ 2 · \alpha^2 \ = \ 2· \left(-\frac{b}{2a} \right)^2 \ = \ \frac{b^2}{2a^2} \ \ \ , $$
$$ \alpha^3 + \beta^3 \ = \ 2 · \alpha^3 \ = \ 2· \left(-\frac{b}{2a} \right)^3 \ = \ -\frac{b^3}{4a^3} \ \ . $$
It remains to determine whether $ \ \Delta \neq 0 \ $ (two distinct, non-zero roots) can produce a geometric progression. To save a bit of writing, we will identify the roots by their "components" $ \ \alpha \ = \ B + D \ \ , \ \ \beta \ = \ B - D \ \ . $ The expressions are then
$$ \alpha + \beta \ = \ 2 · B \ \ \ , \ \ \ \alpha^2 + \beta^2 \ \ = \ \ (B + D)^2 \ + \ (B - D)^2 \ \ = \ \ 2· (B^2 + D^2) \ \ \ , $$
$$ \alpha^3 + \beta^3 \ \ = \ \ (B + D)^3 \ + \ (B - D)^3 \ \ = \ \ 2 B^3 \ + \ 6 B D^2 \ \ . $$
In order for these to be in geometric progression, we require
$$ r \ \ = \ \ \frac{2· (B^2 + D^2)}{2 · B} \ \ = \ \ \frac{2 B^3 \ + \ 6 B D^2}{2· (B^2 + D^2)} $$
$$ \Rightarrow \ \ (B^2 + D^2)^2 \ \ = \ \ B · (B^3 \ + \ 3 B D^2) \ \ \Rightarrow \ \ B^4 \ + \ 2·B^2D^2 \ + \ D^4 \ \ = \ \ B^4 \ + \ 3·B^2D^2$$
$$ \Rightarrow \ \ B^2D^2 \ - \ D^4 \ \ = \ \ D^2 \ · \ (B^2 \ - \ D^2) \ \ = \ \ 0 \ \ . $$
(This is along the lines of the equation you developed.)
This produces no new zeroes: we have already rejected $ \ D \ = \ \frac{\sqrt{\Delta}}{2a} \ = \ 0 \ \ $ in our assumption, and $ \ B \ = \ \pm D \ $ gives us the zeroes $ \ 0 \ $ and $ \ 2·B \ = \ -\frac{b}{a} \ \ $ (and we will have the associated geometric progression). This does appear permit the condition $ \ \Delta \ = \ b^2 \ \neq \ 0 \ \ \ , $ but that is equivalent to $ \ b^2 \ = \ b^2 - 4ac \ \Rightarrow \ 4ac \ = \ 0 \ \Rightarrow \ c = 0 \ \ , $ since $ \ a \neq 0 \ \ . $
The proposition can thus be stated as:
If $ \ c = 0 \ \ $ (or $ \ b = 0 \ \ \mathbf{and} \ c = 0 \ ) \ $ or $ \ \Delta = 0 \ \ $ (or $ \ \Delta = b^2 \ ) \ , $ then $ \ \alpha + \beta \ , \ \alpha^2 + \beta^2 \ , \ \alpha^3 + \beta^3 \ $ are in geometric progression for the real roots $ \ \alpha \ $ and $ \ \beta \ $ of the quadratic equation $ \ ax^2 + bx + c = 0 \ \ . $
This makes choices $ \ \mathbf{(a)} \ \ \text{and} \ \ \mathbf{(b)} \ $ provisionally correct, since they can be true under specific conditions . These are really "gotcha" choices, and shouldn't properly be accepted (or even offered as choices) on an exam. Choice $ \ \mathbf{(d)} \ $ is technically correct, but it clearly doesn't "give the whole story". Choice $ \ \mathbf{(c)} \ $ is the only one that covers the requisite conditions fully.
My feeling is that this is a poorly-constructed set of choices, and perhaps this shouldn't have been posed as a multiple-choice question. (I am picturing the minor riot that erupted when students contested the instructor's answer.) I agree with Yathiraj Sharma in that the problem could be "saved" if it instead asks which choice is always correct.