Saad, Normally I would say A only. That's probably the answer that would be considered correct. But I have to qualify that in real life.
I set up router r1 with RIPv1/IOS 12.1(9) just like your example (int e1 is substituted for your s1) and made sure the connected routers were able to ping.
Observed: RIP only sends/receives updates from the interface covered by the NET statement. The default route is not included in any RIP updates. And surprise - updates to e0 are generated BUT SUPPRESSED as there aren't any routes to send (the connected route doesn't need to be sent).
See below. Robert
r1#deb ip rip r1#sh ip route . .. Gateway of last resort is 0.0.0.0 to network 0.0.0.0
172.16.0.0/24 is subnetted, 1 subnets C 172.16.1.0 is directly connected, Ethernet1 10.0.0.0/24 is subnetted, 1 subnets C 10.1.1.0 is directly connected, Ethernet0 S* 0.0.0.0/0 is directly connected, Ethernet1 r1#
00:28:52: RIP: sending v1 update to 255.255.255.255 via Ethernet0 (10.1.1.1)
00:28:52: RIP: build update entries - suppressing null update
00:29:19: RIP: sending v1 update to 255.255.255.255 via Ethernet0 (10.1.1.1)
00:29:19: RIP: build update entries - suppressing null update
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