Determine what they are trying to ask, and what you will need to solve it
Eliminate any non-essential information
Draw a picture, graph, or equation
In moments of high stress like exam taking, always work with the paper they give you to avoid careless mistakes.
Solve.
For this question, it is best solved with paper in hand, because you can rotate the paper upside down and hopefully solve the problem. First, check the examples given, understand what changes when you flip it upside-down and figure out which numbers can still be read upside-down (for example, 7 does not work when flipped but 5 and 1 do). Next, write out all the options (A-E) in the same analogue format and then do the flip test on each. You can save time by just flipping your paper instead of writing out the upside-down versions (also less complicated). Then you can figure out the answer.