Risk transference is when risk is passed on to an external agency, for example, an insurance company. In reality, some insurance companies have a clause that states the risk is still the responsibility of the organization in question, but the term is still the best answer choice listed.
There is no such thing as risk elimination; it is impossible to remove all risk.
Risk acceptance is when a company is okay with a certain amount of risk and considers it the cost of doing business if a risk does manifest itself.
An example of risk avoidance would be if a company decided to shut down a server that was being attacked by botnets sending DDoS attacks every day.