Thanks everyone for your valuable comments.
Conclusion:
The variable created using SUM statement is initialized with 0 during compilation phase.
Since count1 + 1 is a sum statement it can be read as ;
retain count1 0 ;
count1 = count1 + 1;
since retain statement get its 0 value during compilation time I think answer is C.
C. It is assigned a value 0 at compile time.
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