Feature Engineering vs Feature Extraction in Quantitative Methods (Big Data Projects)

CFA Level II Quant
#1

I was doing an example in the CFA Curriculum Quant 2022 textbook and got 1 question confused and the answer is confusing.

Question - Feature Engineering vs Feature Extraction

I compared the meaning between Feature Engineering vs Feature Selection in the textbook and thought both of them meant the same thing as below:
Feature Engineering vs Feature Extraction

I Googled for these 2 differences and it seems like it’s still a debatable topic. If this question comes on the real exam, which one should I select? Feature Engineering or Feature Extraction?