When the red blood cells were placed in an isotonic solution, they had a balanced concentration of solutes compared to their surroundings, and no net movement of water occurred. However, when sugar was added to the solution, it created a hypertonic solution, meaning the concentration of solutes outside the cells became higher than inside the cells.
In this hypertonic environment, water moves out of the red blood cells to balance the solute concentrations, which can lead to the cells shrinking (a process called crenation).
Thus, the correct answer to your question is:
The red blood cells released water through osmosis to reach equilibrium with the surrounding solution.
This choice accurately describes the movement of water from inside the cells to the surrounding hypertonic solution in an effort to achieve osmotic balance.