We have
[tex]81-49n^4=9^2-(7n^2)^2[/tex]
so this is indeed a difference of squares. Factorizing would give
[tex]81-49n^4=(9-7n^2)(9+7n^2)[/tex]
making the answer D.
We can further factor the first term here and write
[tex]9-7n^2=3^2-(\sqrt 7\,n)^2=(3-\sqrt7\,n)(3+\sqrt7\,n)[/tex]
but that's clearly out of the scope of this question.