IMO the question asks to determine the no. of ways a student can choose one or more than one Qns.
So, imagine u r a student on such a test u can answer any number of Qns out of 8 Qns(each of 8 Qns has alternatives: A & B) Obviously, it's a liberal test with very little constraints.
What are your options on the Qn. no. 1?? Well, u can select 1.A or select 1.B or select nothing. So, 3 ways to select Qn no. 1.
Similarly 3 ways to select Qn no. 2 and so on up to Qn no. 8.
Together, you have 3^8 ways to select 8 questions.
But ONE way in all these is selecting NOTHING in all 8 Qns. That has to be eliminated as Qn asks one or more than one.
So, N = 3^8-1. Answer.