Let's interpret this equation. If we have that a runner has 0 races under his belt, he completes the race in 38.1 min. We have that the slope is -1.2 min/race and the intercept at n=0 is 38.1 min. Hence, for every race, the duration of the run decreases by 1.2 min (or increases by -1.2 min).
Lets derive that. Suppose a runner that has run n races, runs once more.
The difference of times is:
(-1.2(n+1)+38.1)-(-1.2n+38.1)=-1.2(n+1)-(-1.2n)= -1.2n-1.2+1.2n=1.2 minutes.
Hence, the correct answer is the first.