Hi Abhirup.
This is a PMBOK definition, failure costs are the cost of poor quality; costs spent during and after the project because of failures to meet the requirement.
as for other choices:
>Internal costs : this is a category of failure costs, failures found by the project team.
>Prevention costs : this is part of cost of conformance. investments in preventing non-conformance.
>Cost of defects : this is part of internal costs.
please refer to section 8.1.2.2 Cost of Quality (COQ) in the PMBOK Guide it includes more clarifications.