Ok so basically this question is testing your knowledge of semi conservative replication of DNA. (i.e. two new strands are made from one old strand plus a load of free nucleotides, so that each new DNA molecule contains one old and one new strand)
If the B DNA was grown in light nitrogen for one generation then each of its DNA molecules will compromise one strand made with the heavy nitrogen nucleotides and one with the light. So therefore it will be slightly lighter than the A DNA which will all have 2 strands made of heavy nitrogen.
With me so far?
Now the C DNA after one generation will be exactly like the B DNA. So we have 2 molecules of C DNA. Strand I in molecule A is heavy and strand II is light. Strand III in molecule B is heavy and Strand IV is light. Then the DNA replicates again and makes 4 DNA molecules. Molecule C contains Strand I and some new light nucleotides. Molecule D Contains Strand II (which was light) and some more new light nucleotides. Molecule E will be identical to C, and F to D. So therefore you will have 2 molecules that are 'medium' - one heavy and one light - and 2 molecules that are 'light'.
So therefore when you centrifuge the solution the DNA will split into two layers.
That make sense?