Better fit means how the data are close enough to a line (with m slope here it is 0.5).
Y=mx + c
in this problem, m=0.5 and c=0
but y value( observation ) are different for A and B.
Though m is constant but due to the different y (observed) values, A 's recorded values are nearer to that line compare to B's value. it is reflected in SSE.
so. A 's records are better fit than B.
hope, it hepls you.