You have the correct answer. Nice work.
The answer is choice B) (x-3)^2+(y+2)^2 = 4
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Explanation:
The center is (h,k) = (3,-2)
The radius is r = 2 which is the distance from the center to any point on the edge of the circle. You can use the distance formula if you want, but it can easily be a matter of counting spaces in this case.
So
(x-h)^2 + (y-k)^2 = r^2
(x - 3)^2 + (y - (-2))^2 = 2^2
(x - 3)^2 + (y + 2)^2 = 4
is the answer
