Step 1: Get the index and offset widths from the cache size.
Cache size is $4$ KB and block size is $16$ bytes, so there are $4096/16=256$ lines, needing $8$ bits for the index. A $16$ byte block needs $4$ bits for the offset. So the lowest $4$ bits of an address pick the byte inside a block, and the next $8$ bits above that pick the cache line.
Step 2: Convert the addresses using only their low bits.
We only need the lowest $12$ bits of each address, the same as the lowest $3$ hex digits.
$P$: last three hex digits $B32$, offset $=2$, index byte $=B3$.
$Q$: last three hex digits $B26$, offset $=6$, index byte $=B2$.
$R$: last three hex digits $B36$, offset $=6$, index byte $=B3$.
$S$: last three hex digits $B32$, offset $=2$, index byte $=B3$.
The tag is everything above these $12$ bits, which is $845$ for $P,Q,R$ and $846$ for $S$.
Step 3: Draw the conflict picture.
Line $B2$ is used only by $Q$, so once it is loaded it is never disturbed again; every access after the first is a hit there. Line $B3$ is shared by three different accesses per round: $P$ and $R$ belong to the same block, tag $845$, while $S$ belongs to a different block, tag $846$, that maps to the same line. Since a direct mapped cache allows only one block per line, the $P/R$ block and the $S$ block constantly kick each other out of line $B3$.
Step 4: Follow one full round once the pattern has settled.
Suppose line $B3$ holds $S$'s block, tag $846$, at the start of a round, left over from the previous round's last access. Then: $P$ needs tag $845$, finds $846$, MISS, reloads $845$. $Q$ needs line $B2$, untouched, HIT. $R$ needs tag $845$ at line $B3$, which $P$ just loaded, HIT. $S$ needs tag $846$ at line $B3$, which currently holds $845$, MISS, reloads $846$. This leaves line $B3$ holding $846$ again at the end of the round, exactly the condition assumed at the start, so the same four outcomes, miss, hit, hit, miss, repeat identically in every later round.
Step 5: Handle the very first round separately.
On the first round the cache starts empty rather than holding $846$, but the outcome is the same: $P$ misses, empty line, $Q$ misses, empty line, but this is its only miss ever, $R$ hits, block just loaded by $P$, $S$ misses, different tag at line $B3$.
Step 6: Read off which statements always hold.
$P$: miss in every one of the $10$ rounds, so every access to $P$ is a miss is true. $R$: hit in every one of the $10$ rounds, so every access to $R$ is a hit is true. $Q$: misses only in round $1$, so every access to $Q$ is a miss is false. $S$: misses in every round, not just the first, so all accesses after the first being hits is false.
Step 7: Conclude.
\[ \boxed{\text{Statements (A) and (B) are correct}} \]