Answer: A
Correct answer: successive values differ in exactly one bit
Gray code is an ordering of binary values in which each differs from the next in exactly one bit. For three bits it runs 000, 001, 011, 010, 110, 111, 101, 100. That single-bit property solves a real problem. When several bits change at once in ordinary binary - 0111 to 1000, for instance - they will not switch at precisely the same moment, and a reading taken during the transition can be wildly wrong. With Gray code only one bit ever changes, so the worst error is one count. It is therefore used in shaft encoders and position sensors, where a mechanical brush or optical reader may sample mid-transition. It is also why the axes of a Karnaugh map are labelled in Gray code: adjacent cells then differ in one variable, which is what makes grouping valid. Conversion from binary is simple: the first bit is copied, and each later bit is the XOR of the corresponding binary bit with the one before it.