The Answer is : A.

It is impossible to draw an inference about the knowledge of the defendant from his aunt’s letter unless one believes the contents of the letter. Therefore, the credibility of the aunt is drawn into question (since the letter is being offered to prove the truth of the matter asserted, i.e., that his car was in good working condition), and the letter is hearsay. It follows that choice (C) is incorrect.

The statement in the letter is clearly probative on the issue of the condition of the car on the day before the sale, a time which was relevant to the lawsuit, and, therefore, choice (B) is incorrect.

Choice (D) is incorrect because, even though the statement is hearsay, it does not come within the present sense impression exception since the letter does not indicate that it was written while the aunt was observing the event or immediately thereafter.