I contest that choice B is closer to the test string, as it's only 4 characters(and 2 deletes) from being the original string. Whereas you see C as closer because it includes both brown and red. It would, however, have a greater edit distance.
There is an algorithm called Levenshtein Distance which measures the edit distance between two inputs.
Here is a tool for that algorithm.
EDIT: Sorry, I keep mixing strings in the levenshtein tool. Updated to correct answers.