I am firmly in the 125% camp, however I think I have just spotted a flaw:
The question says, "In one year the circulation of News Today doubled." But this year can't be "the first year" of circulation, otherwise you're doubling zero.
So it can be the first year that we're looking at, but not the first year of circulation. So when we're asked to compare the end of the first year with the end of the third year, it's not truly the first year.
However, doubling, tripling or reducing zero by a quarter all give you zero, so I'm sure that's not what the question-setter intended.
Hope that makes sense.