Let O be the centre of both the concentric circles. Now, given that radius of smaller circles is r. Then radius of bigger circle will be OA = √2r (By pythgoras theorem).
Now, area of shaded region:
Area of sector AOB - Area of triangle AOB
90º/360°×π×(Radius of larger circle)² - 1/2×base×height (Notice that the angle being subtended at centre is 90° because we know that diagonals of a square bisect each other at 90°)
1/4π(√2r)²-1/2√2r√2r
(π2r²/4)-r²
(π2r²-4r²)/4
2r²{(π-2)/4}
{(π-2)/2}r²
Therefore, option (D) is correct.