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A
They are interchangeable for all screws
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B
A Phillips screwdriver fits cross-shaped screw heads; a flathead fits single-slot screw heads
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C
A flathead is only for Phillips screws
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D
Both are used to drill holes
Why this is the answer
A Phillips screwdriver has a cross- or X-shaped tip that fits the cross-shaped recess in Phillips screws, providing better grip and less slipping. A flathead (slotted) screwdriver has a single flat blade that fits the single straight slot in slotted screws. Using the wrong type — for example, a flathead in a Phillips screw — can strip the screw head or slip and cause injury. Matching the screwdriver tip to the screw head is basic tool knowledge. There are other tip types too (Torx, square/Robertson), each designed for a specific fastener.
Source: ASVAB SI, Screwdrivers