This is a practice question for my upcoming exam.
I am finding it difficult to understand the approach and solve questions like these, especially when it comes to structured questions (non-multiple choice). Could someone please guide me on how I can solve such questions? I do not know how the solution is $C$ in the above question. I would also be really grateful if you could elaborate with your own examples, along with this one.
Your help will be appreciated.

Your matrix solution $M$ is such that $M\left( \begin{array}{c} 1 \\ -1 \end{array} \right) = \left( \begin{array}{c} 1 \\ -1 \end{array} \right)$ and $M\left( \begin{array}{c} 1 \\ 1 \end{array} \right) = \left( \begin{array}{c} 0 \\ 0 \end{array} \right)$