Narasimha Lila Quiz Canto 7 Chapter 1 Section 1 – Verses 7.1.1 – 7.1.3

Answer: Because Krishna was apparently siding with the demigods and being inimical towards the demons

Srila Prabhupada explains in the SB 7.1.1

The Lord is always kind to all living entities, irrespective of form and situation, yet He took the side of Indra just like an ordinary friend. This was the subject of Parīkṣit Mahārāja’s inquiry. As a devotee of Lord Kṛṣṇa, he knew very well that Kṛṣṇa cannot be partial to anyone, but when he saw that Kṛṣṇa acted as the enemy of the demons, he was somewhat doubtful. Therefore he posed this question to Śukadeva Gosvāmī for a clear answer.

Answer: His external energy

Srila Prabhupada explains in 7.1.2

We should always remember the distinction between spiritual and material. That which is material is infected by material qualities, but these qualities cannot touch that which is spiritual, or transcendental. Kṛṣṇa is absolute, whether He is in the material world or spiritual world. When we see partiality in Kṛṣṇa, this vision is due to His external energy. Otherwise, how could His enemies attain salvation after being killed by Him?

Answer: All three options are to be selected

Srila Prabhupada explains in Srimad Bhagavatam 7.1.2

Envy and friendship arise in one who is imperfect. We fear our enemies because in the material world we are always in need of help. The Lord, however, does not need anyone’s help, for He is ātmārāma. The Lord says in Bhagavad-gītā (9.26):

patraṁ puṣpaṁ phalaṁ toyaṁ

yo me bhaktyā prayacchati

tad ahaṁ bhakty-upahṛtam

aśnāmi prayatātmanaḥ

“If a devotee offers Me with devotion a little leaf, a flower, fruit or water, I shall accept it.” Why does the Lord say this? Is He dependent on the offering of the devotee? He is not actually dependent, but He likes to be dependent upon His devotee. This is His mercy. Similarly, He does not fear the asuras. Thus there is no question of partiality in the Supreme Personality of Godhead.

Srila Prabhupada explains in SB 7.1.3

Since Lord Nārāyaṇa is absolute, His transcendental qualities are described as one. Thus His punishments and His offerings of favor are both of the same value. Essentially, His inimical actions are not displays of enmity toward His so-called enemies, but in the material field, one thinks that Kṛṣṇa is favorable to devotees and unfavorable to non-devotees.