Labeling loops is correct. You can put a label just before an while or for loop and then break or continue from that loop later.
Seems like there is part of the code missing. What is the value passed into the add() method. The code for the add() method is fine, so I would say the answer is D based on the other answers. But you are missing main and the call to add here, so if you tried running this class with
java Test you would get a runtime error as it wouldn't be able to find main.
Bill