As per Fama-French 3-Factor Model, there are three factors which can be used to explain the returns of a stock.

Below are the 3 factors:

Market risk premium: Market's premium over Risk-free rate

SMB or Small minus Big: Small companies' premium over large companies

HML or High minus Low: Value firms' premium over Growth firms

Beta with respect to market risk premium = 0.80 | Beta with respect to Small companies' premium over Large companies = -0.90

Beta with respect to Value firms' premium over growth firms = -0.30

Let's find each premium one by one.

Market Risk Premium = Market return - Risk-free rate

Market return = 10% | T-bills return = 1%

Market risk premium = 10% - 1% = 9%

Small companies' premium over Large companies = Small companies returns - Large companies returns

Small stocks returns = 5% | Large stocks returns = 13%

Small companies' premium over Large companies = 5% - 13% = -8%

Value firms' premium over Growth firms = Value firms returns - Growth firms returns

Value firms returns = 4% | Growth firms returns = 9%

Value firms' premium over Growth firms = 4% - 9% = -5%

Expected Return of a security as per Fama-French model = Risk-free rate + Beta_MKT * Market risk premium + Beta_Small-Big * Small companies' premium over Large companies + Beta_High-Low * Value firms' premium over Growth firms

Putting values calculated in the equation

Expected return on Boulevard, Inc = 1% + 0.80 * 9% + (-0.90)*(-8%) + (-0.30)*(-5%)

Expected return on Boulevard, Inc = 1% + 7.2% + 7.2% + 1.5%

Expected return on Boulevard, Inc over 12 months = 16.90%

Hence, Expected return on Boulevard, Inc over 12 months is 16.90% which is the 3rd Option among the given choices.