The answers given are correct, the problem is the poor phraseology of the question.
Advancing the timing means moving the spark event further in advance of other "events" in the engine, this "event" specifically being TDC on the compression stroke.
Except if we waited until AFTER TDC on the compression stroke to fire the plug, advancing the timing would then place the ignition event closer to TDC. The engine would run with the spark after TDC, but not well and would produce little power.
I even wonder why they ask this question of a PPL candidate - how many modern training airplanes (i.e built in the last 50 years) have their spark advance adjustable from the cockpit? (Other than by indirect connection to the throttle, which controls engine speed, and that is what determines spark advance - spring loaded weights in the magnetos.)
One wonders if the writer of the question has ever actually SEEN an internal combustion engine . . .
Best Regards,
EchoMike (who has seen more than a few of them, even including one or two on airplanes)