What will be the initial and future data types for the document approval column?

Answer options:

A.Two options and Choices
B.Choices and Choices
C.Two options and Status
D.Lookup and Choice
E.Choice and Choice
F.Two options and Choice
G.Choices and Choice

Correct Answer: E 
Branch managers eventually want to have additional options, like the "Conditional approval," "Need additional documents," etc., to the initial "Approved" and "Rejected" items on the approval decision dropdown.
The initial document approval column type will be Choice. This data type contains a list or set of items (choices) that users can select from the interface dropdown. You can choose already defined sets or create a new set. 
Branch managers eventually want to see more than two items: "Approved" and "Rejected." If you need to add new items to the same list of choices, you can use the Power Apps portal, find the table, edit the column, and add new items/choices. If the choice list is global, you can use the menu item Choices under the Data section, find a list of choices in your environment, and edit it.
There are two scope options when you create a new set: Global choice (the default) and Local choice. If you want to use the set only within the current table, you can change Global to Local`s scope. 
There is a similar data type to Choice — Choices. The Choice data type is a single choice select list. The Choices data type is the multi-select choices list. The Dataverse treats them as two different data types (Number 1 and 2). 

Important to remember that you cannot change a column`s data type or the Choices scope after their creation. But you can add new items to already created Choices. Options A, C, and F are incorrect because Two options is Boolean Yes/No column but not the list of choices with only two options.
Options B and G are incorrect because the branch managers need to select only one choice from the list but not a multiple. Therefore, you need to use the Choice data type but not Choices.
Option D is incorrect because the Lookup data type references the other table or tables but not the list of choices.
For more information about the Dataverse column creation and data types, please visit the below URLs: 

https://docs.microsoft.com/en-us/learn/modules/data-modeling/5-dataverse
https://docs.microsoft.com/en-us/powerapps/maker/data-platform/types-of-fields
https://docs.microsoft.com/en-us/powerapps/maker/data-platform/types-of-fields#choices
https://docs.microsoft.com/en-us/powerapps/maker/data-platform/create-edit-global-option-sets