Can you let me know if this site is crazy? or am I?
You're right and the website is wrong.
I know it's frustrating but I think that anyone who went through a certification also went through the same frustration ;).
Sometimes, the issue is not even in the training program but in the certification organism itself who do not check his own questions enough (question quality varies greatly from one organism to another). Training programs then only reflect this situation by using older official questions and answers.
Instead, take the fact that you have now enough knowledge and confidence to challenge such answers as a good sign of your level. At the end, you don't need 100% good answers. As long as you have enough knowledge, you should be able to pass despite odd, malformed and wrong questions.
As discussed in the comments of the question the correct answer is in fact
This is a common issue of using online (and free) test banks. The question/answer database is not reviewed for errors. I have yet to find a reasonably priced, error-free exam bank for Network Security exams.
What I recommend you do is use the resources included with and inside physical books. The book itself will quite likely contain error-free exam test questions, and some additional ones on a CD. This route will be more pricey, but certainly worth the added costs.
This is how I studied for my CompTIA Security+ CE exam, and will be continuing with my CompTIA CASP exam.