Answer : (b) \(\frac{6-\pi}{8}\)

In △FAE, ∠FAE = 90º, as it is an angle of a square. EF will be the diameter of the circle as an angle subtended by a diameter of the circumference of a circle = 90º.
So EF will pass through center O.
In △AOF and AOE, OF = OE (radii of circle) AO = OA (common) ∠OAF = ∠OAE = 45º
∴ △AOF ~ △AOE ⇒ AF = AE
Also, area of △AFE = \(\frac{1}{2}\) × AF × AE = \(\frac{1}{2}\)AF2
Given FE = 2
⇒ AF2 + AE2 = FE2 = 22 = 4 ⇒ AF2 = 2
∴ Area of △AFE = \(\frac{1}{2}\) × 2 = 1.
Area of shaded region 2 = 2 × (Area of sector AOE – Area of DAOE)

∴ Area of the unshaded region of the circle
= Area of the circle – Area of shaded region 2

∴ Area of shaded region 1
= Area of the square – area of the unshaded region of the circle
= 22 - \(\frac{\pi +2}{2} \) = \(\frac{6-\pi}{2}\)
∴ The proportion of the sheet that remains after punching
= \(\frac{Area\, of\, region\,1}{Total\, area\, of\, the\, square}\) = \(\frac{6-\pi}{\frac{2}{4}}\)
= \(\frac{6-\pi}{8}\)