The graph that demonstrates a transformation that preserves both distance and angle measure is the first option: Two squares, a smaller one inside a larger one, are plotted in quadrant 1 of a coordinate plane. This represents a similarity transformation (specifically, a dilation) that preserves the properties of the squares in terms of the angles and the ratios of the sides.
The other options involve transformations that change distances or angles in some way, such as translations or resizing that do not maintain the same shape and size (like in triangles of different sizes), making them incorrect choices for preserving both distance and angle measure.