Here's my re-take on the answer:
Figure below shows the arrangement of the circles whereby the width of the strip is minimum. My apologies for the quality of the drawing.

The width of the paper= sum of green lines + purple line
We know that the triangle is equilateral since it connects the center of the 3 circles and each side = 4 since the radius of each circle is 2 (given diameter=4).
The height of the triangle (purple line) = 2root3 using the 30 60 90 triangle rule (side ratio of 1: root3:2)
Each green line = radius of circle = 2
Therefore the width of paper = 2+(2root3)+2= 4+2root3
Answer= B

















