The error is in the preposition "at" in part B. The preposition "at" is used to denote the location. But in this sentence, it is about a picture in relation to an artist. 'Of' is a preposition that indicates relationships between other words, such as belonging, things made of other things, things that contain other things, or a point of reckoning. So, "of" is the correct preposition that should have been used. "The picture of the famous artist was sold for 1 million dollars at the auction" is the required correct form.
Hence, the correct option is (a).
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