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Solutions
The is grammatically incorrect.
• The sentence has an error in it. Let us find where the error is residing.
• In the first part of the sentence the subject is mentioned which is my friends.
• The subject is followed by the main verb 'moved'. The sentence is written in the simple past tense as the subject has taken the house some time ago.
• Now only the last part of the sentence is left. Here we can find the object along with an article and a preposition. Article 'the' the is applicable here because a particular location that is a sea, is mentioned here. When we try to figure out a particular thing or incident we use 'the'.
• Here the proposition is only left. The preposition at is used to indicate time or any specific location in cities or villages.
• The preposition by is used to indicate someone has done something. To express the doer of the action we use this preposition especially in the passive sentences. We can also use 'by' to mention 'next to' or 'beside'.
• The sentence in the question will take 'by' as the preposition of the object. The subject has a house beside the sea. So, the most convenient and useful preposition will be 'by' instead of 'at'.
• Thus, the correct sentence will be:
My friends moved to a small house by the sea.
• Hence, option A is the correct answer.