The correct answer is A. 11.50 %.
The formula for calculating the annual rate of return is:
$Annual\ rate\ of\ return = \dfrac{Net\ interest}{Principal\ amount}\times\dfrac{100}{Number\ of\ days\ in\ a\ year}\times\dfrac{1}{1-\text{Withholding\ tax}}$
In this case, the net interest is P890.36, the principal amount is P110,000, the number of days in a year is 365, and the withholding tax is 20%. Substituting these values into the formula, we get:
$Annual\ rate\ of\ return = \dfrac{890.36}{110000}\times\dfrac{100}{365}\times\dfrac{1}{1-0.20} = 11.50\%$
Therefore, the annual rate of return is 11.50%.
Option B is incorrect because it is the annual rate of return after deducting the withholding tax. Option C is incorrect because it is the annual rate of return before deducting the withholding tax. Option D is incorrect because it is the annual rate of return after deducting the withholding tax and rounding the result to two decimal places.