Lots of Luck! - Quantitative Expressions

In fact, Answers 3 and 4 are sometimes heard as alternatives; for some reason we ask for 'a drop' rather than 'a drip', though. (You will also hear 'drop' in negative contexts such as 'It hasn't rained a drop since last week' or 'If he's driving, he won't touch a drop of alcohol'.)

'Group' is the usual collective here; we would only speak of a 'chain' (Answer 4) if they were all in a clear row when viewed from above, or on the map (such as the Florida Keys). If they appear more randomly scattered than in a line, 'chain' doesn't make much sense!

These are the two most usual ways of keeping a quantity of books.
The various wrong Answers consist mostly of ungrammatical (and/or ill-formed) versions of the singular and plural of the two key words.

We do also speak of a 'tool-kit', but that is more likely to be bought as a complete unit, like a set of drill bits. A workman who picks his own equipment will probably carry the tools loose inside a bag.
We talk about a set of spanners in different gauges (pronounced 'gayjiz') ~ i.e. different sizes, lengths, and versions of the 'business end'. French calls this 'un jeu', which suggests some kind of a game; we do not have this connotation in English!

Answer 1 contains misspellings for the two words in Answer 2, which are each possible (and would be understood), but these are not what we usually have or say.
Answer 4 has unnecessary apostrophes.
We speak (even now!) of a (small) 'book' of matches, and a 'bucket of sand' (sometimes also referred to as a 'fire bucket').

One circular slice (as, otherwise, in Answer 1) with its core removed is a 'ring'. It makes a pretty visual effect, and the flavour of the fruit with the meat goes very well together (like mint sauce or redcurrant jelly with lamb).
Apologies to any readers who are vegetarian, and/or who do not eat pork for other reasons ... ! (There are plenty others of us out here, who do ... )

An 'album' (Answer 2) is an originally-blank book, into which people will stick their personal photographs ~ of holidays, of growing families or special occasions (such as a wedding).
A 'book' (Answer 1) suggests that the images are already printed-in: i.e., that this is a more permanent and mass-produced collection of pictures, like a souvenir publication from a tourist landmark such as a National Trust country house.
A 'file' (Answer 3), in the old-fashioned sense, suggests that the sheets that have the photos on them may be loose-leaf, so they can be taken out, looked at, passed around one-by-one and maybe put back in a different order. A file of photos such as this may be more appropriate to a police investigation ...
A 'collection' (Answer 4) may not be in any single order, nor bound together at all, but perhaps just a lot of loose prints kept in a box.

These are all good phrases, but look carefully at the cues: they needed to start with a consonant in the front case (' a ... ' ) and a vowel in the second case (' an ... ' ) ~ so only Answer 3 fits really well.

Blank paper does not usually come in 'books' (Answer 1); a 'block' suggests either a very thick block (several hundred small thin sheets) or perhaps a typical student's block of about 100 sheets of A4. A 'pad' is usually smaller and thinner (e.g. up to 100 sheets of A5 or smaller size), and is bound so that the pieces can easily be torn off to take away ~ either from a spiral-bound back, or just one side of the pad being lightly glued.
A single 'piece' of paper (Answer 4) is a lot better than nothing, but it offers you less space than a whole pad!
This Question harks back to the days of fixed landlines; nowadays many people have a single mobile phone or other gadget which can also be used for typing and sending notes. But it can be remarkably awkward to use such a machine as a diary at the same time as speaking through it. A handy piece of paper can still be very convenient!

'Half a pound' = 8 oz. = 227g (about 10% less than 1/4 kg). A pack that weighed twice this much would be a bit too bulky for practical use in a private household.
'Inches' (Answer 4) are a measure of length, not of mass / weight.