Sarah Purchased a Small Flat in Sydney on 14 December

Sarah purchased a small flat in Sydney on 14 December 2014 for$520?000which she lived in until she was forced to move interstate in March 2018. Sarah lived in a rented apartment interstate and has not owned another property. Sarah returned to Sydney in March 2020 and then sold the flat in June 2020 for $750,000. Does Sarah have any CGT liability on the sale of her Sydney flat?

A) Yes, as she rented out the Sydney flat for 2 years then this portion of her ownership period is subject to CGT liability
B) Yes, as she rented out the Sydney flat for 2 years, she completely loses the CGT main residence exemption
C) No, because after the CGT discount, Sarah made a capital loss on the sale
D) No, as the Sydney flat remained her main residence for the whole period of ownership