As it is a right angled triangle (sides 3, 4, 5)
we know that centre of circumscribed circle lies on midpoint of hypotenuse..
So it's radius is (5/2) and area is
(5/2)2
Now, for inscribed circle, see attached diagram... now we can make use of the fact that two tangents drawn from a point to a circle have same length...
So
5-x + 3-x = 4
x = 2
And radius = 3 - x from figure again
so radius = 3 - 2 = 1
so
area =
(1)2
So area of inscribed circle / area of circumscribed circle
= 
(1)
2 /

(5/2)
2 = 4 / 25
OPTION 1 IS THE ANSWER