Answer : Option B

Explanation :

Let the man invests Rs.x at 6% and Rs.y at 7%
Simple Interest on Rs.x at 6% for 2 years + Simple Interest on Rs.y at 7% for 2 years = Rs.354
$MF#%\begin{align}&\dfrac{\text{x} \times 6 \times 2}{100} + \dfrac{\text{y} \times 7 \times 2}{100} = 354\\\\ &\text{x} \times 6 \times 2 + \text{y} \times 7 \times 2 = 354 \times 100\\\\ &\text{x} \times 6 + \text{y} \times 7 = 177\times 100\\\\ &\text{6x} + \text{7y} = 17700 \quad \color{#F00}{\cdots \text{(1)}}\end{align}$MF#%
One-forth of the first sum is equal to one-fifth of the second sum
$MF#% => \dfrac{x}{4}= \dfrac{y}{5}\\\\ => x = \dfrac{4y}{5}\quad \color{#F00}{\cdots \text{(2)}}$MF#%
Solving (1) and (2),
$MF#%\begin{align}&\text{6x} + \text{7y} = 17700 \\\\ &6\left(\dfrac{4y}{5}\right) + 7y = 17700\\\\ &24y + 35y = 17700 \times 5\\\\ &59y = 17700 \times 5\\\\ &y = 300 \times 5 = 1500\\\\ &x = \dfrac{4y}{5} = \dfrac{4\times1500}{5} = 4 \times 300 = 1200\end{align}$MF#%
total sum invested = x + y = 1500 + 1200 = 2700