Welcome to the Ranch, Michael!
I am often badgering them with arguments over answers, but I think I agree with the authors here.
Answer F. says "An uncaught exception is thrown."
The most meaningful interpretation of this is that "an exception of a type that is not caught anywhere during the stack unwinding terminates the thread in which it was thrown with a stack trace." (I just made that up, there is probably something more formal in the JLS).
That is not occurring here. The very fact that the 4 appears in the "1234" demonstrates clearly that the exception thrown will be of a type that will be caught in line 9, and handled.
So while, yes, an exception is indeed thrown from the code called at line 7, it is properly caught and handled by the catch block in lines 9 thru 11.
Had that catch block been for an IOException or ClassCastException, or had it been replaced with a finally { } block instead of catch, I would then agree.
There are a fair number of questions that make you want to argue for an alternate answer considerably more than this one should, we will see you when you get up to those.
Enjoy