The reason for choosing b) would have been that the moon's gravity being weak, the earth's gravity nullified the moon's thus having a floating pen.
The reason for choosing d) would be because Moon's gravity is stronger than Earth's.
This is why I think tests are stupids. If I had chosen b) instead of d) I would have gotten a wrong answer. Even though my thought process would be correct. Just missing the right information (which could have been easily found outside a test environment).
So no, I'm pretty sure your thought process wasn't remotely correct.
If Moon was hanging on a stick connected to Earth (instead of orbiting Earth) and Earth gravity forces on a pen were stronger than Moon's gravity forces, then pen would fall in Earth.
Of course you and I know that there are no such strong materials for that Earth-Moon stick, but that's yet another level of complexity that most people don't have to know about.
Technically that's true, but it would require a completely different scenario. Earth's gravity is miniscule at that altitude. For the moon to have a weaker force it would have to be so small that it would likely not even qualify as a moon any more.
http://en.wikipedia.org/wiki/Roche_limit
You can disagree all you want, it's not because things would just fall towards the moon in practice that it's impossible that the pen stand still.
"Please select all possible conditions under which pen on the Moon would not fall on the ground".