The correct option is:
A) Your friend is demonstrating insight, and you're demonstrating trial-and-error.
In this context, your friend is suggesting a different approach (rotating the chair in a new way) that shows an understanding of the problem and reflects insight. Meanwhile, you are recalling and applying a specific past experience (reclining the chair to fit it through a doorway) which can be seen as a form of trial-and-error based on your previous movements.