Answer
a. 17.9mV.
b. It flows from point a, through the resistor, to point b.
Work Step by Step
$$|\epsilon_{av}|= |\frac{\Delta \Phi}{\Delta t}|$$
$$=B|\frac{A_f-A_i}{\Delta t}|=B\frac{\pi r^2}{\Delta t}$$
$$\epsilon_{av}=(1.35T)\frac{\pi (0.0325m)^2}{0.250s}=1.79\times10^{-2}V $$
b. The magnetic field is directed into the page. The magnitude of the flux through the loop is decreasing. By Lenz’s Law, the induced field goes into the page to compensate for the shrinking area.
By the right hand rule, the current flows clockwise. It flows from point a, through the resistor, to point b.