A graph with three vertices has a beta index no greater than 1. A beta index of a graph is the ratio of number of edges to the number of vertices.
The answer key says true but I think it's false. If loops are allowed and vertex $A$ connects to vertex $A$ then there could be 6 edges in a graph and 3 vertices and clearly $\frac{6}{3} = 2 > 1$ Did the answer key assume that loops aren't allowed or am I missing something?
Latter on the textbook explains beta indexes are used by geographers to measure the connectedness between places, so maybe in that context it wouldn't make sense to have a place connected to itself.
The Beta index of a simple graph, meaning it has no loops or multiple edges between vertices, has a value no greater than $1$. It equals $1$ for a simple connected graph with $1$ cycle.
So, as to the answer to your question, yes, the answer key assumed that the graph is simple.