Doubt from Electrophilic Aromatic Substitution

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In Q16 what occurs in first step, how does EAS occur there, any specific mechanism or step to keep in mind? And other examples where such thing occur cuz in first see i cant see any intra molecular electrophile?

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Someone plz have a look!

Plz see!

@Shaquib sir please see it getting confused...

I am getting option A

Sir answer will be B, after step 1 nitration will be at para position to phenyl grp. But the thing is how do we actually perform step 1.

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Sir actually the purpose of posting this q was that i dont know how can H+ and heat do this.

For the sake of solving problem i can very well see B as the answer, i just need some explaination mechanism and stuff to know abt this type of rxn.