The characters in the picture are 中 ("zhong", meaning "middle"), and 国 ("guo" meaning "kingdom" or "country"): put them together and you have "middle kingdom". All of the incorrect answers are the literal English translations of Chinese names for other countries: 法国 ("faguo" literally meaning "The country of the law", used for France), 美国 ("meiguo" literally meaning "The beautiful country", used for America / USA), 英国 ("yingguo", literally meaning "The heroic country", used for Britain / UK)

More Info: en.wikipedia.org