The fact that the radius of the circle is the square root of 2 should
get your attention. The reason for the test makers to give the radius
the value of the square root of 2 is sothe radius can be used as the diagonal
of the squares inside the circle. It would be the hypoteneuse
of the triangle created using the sides of the square which are
given the value of 1. Since the squares can’t overlap, you could
fit 4 inside the circle. (E)