Its b)
The resolution of the result is 49mg/LSB, whereas the offset registers have a resolution of 196mg/LSB (see register description).
For shock detection, look at page 26f of the data sheet. The shock detection works on the acceleration magnitude (which is the formula you have given). The SHOCK_AXES register allows you to supress some axes for the dection, and then your formula changes (if you use only one axis, then its THRESH_SHOCK=abs(dataX))