It seems, while the correct answer was selected (A), the explanation given is wrong:
First, VWAP is based on trades since the start of the order, not the start of the day. So the 5,000 shares traded before the order placement should not have been included in the calculation of benchmark VWAP.
Second, the weighted average calculation is wrong: the total number of shares in the numerator does not equal the total number of shares in the denominator.
First trade is cheaper than the benchmark by $0.07.
Second trade is more expensive than the benchmark by $0.06.
If somebody could kindly verify this.