The question is seemingly about Archimedes' Principle, but there is a connection to pressure at a depth, which is equal to hdg, as you say.
With a question like this which asks you to 'explain', there is a little context needed that tells how we are expected to explain, and in what terms.
As it is GCSE, I have assumed it would be part of a study of Archimedes.
In terms of pressure at a depth, then the deeper you go in the water, the higher the pressure. P=hdg and it is h, the depth, that is increasing.
So what determines the amount of upthrust? The boat needs this to stop sinking.