Hi!
Let's start with Step 1 of the Kaplan Method for PS: analyzing the question stem.
We're told that there are 2 different sizes of pad - let's call them small and large ("s" and "l"). There are also 4 different colours, b, g, y and p.
We're allowed to make 2 different types of package: 3 pads of the same size/colour and 3 pads of the same size/diff colours.
Finally, we're told that order of colour is irrelevant.
On to Step 2 of the Method: Identify the exact Q. We want to know the total number of possible packages that can be made.
Since there are 2 types of package, let's consider both cases.
1) all 3 same colour/size.
We have 2 different sizes and 4 different colours, so that gives us 2*4 = 8 possible uni-coloured packages (i.e. sb, lb, sg, lg, sp, lp, sy, ly).
2) all 3 same size/diff colours.
We still have 2 different sizes, we just need to figure out the possible combinations of 3 different colours. We could use the combinations formula (4C3, since we've got 4 options and we're choosing 3 of them) or we could just use logic or brute force.
Logic: if I'm using 3/4 colours, then I'm leaving out 1 colour. There are 4 different colours I could leave out, so there must be 4 possibilities.
Brute force: bgp, bgy, byp, gpy... 4 options.
2 sizes * 4 colour options = 8 multi-coloured packages.
Case 1 gave us 8 possibilities, as did Case 2. Accordingly, there are 8+8=16 total possible packages.. choose C!