I sort of got the answer...but my method was somewhat crude...maybe some one has a better answer for you.
First I figured out the x and y intercepts of the line. (4,0) and (-3,0). this told me right away that there is some sort of a 3-4-5 triangle involved with it.
you know the radius of the circle is 1 with origin at (0,0).
when you draw it out in paper, you would have a right triangle in the 4th quadrant with 1/4 of the circle coming in the way.
The shortest distance would be the line perpendicular to the line Y=3/4X-3 and the circle.
so what I did was draw out a rectangle at the 4th quadrant (basically two 3-4-5 triangles) (0,0)(4,0)(-3,0)(4,-3)
Then I drew two diagonals with the length of 5 within the rectangle. The distance from the origin(0,0) to the midpoint of the rectangle is approximately 2.5.
the radius is 1, so you subtract 2.5 from 1 to get ~1.5 which is closest to A.
Like I said, my method was crude and I am not even sure if it right...maybe someone has a better explanation.