How will hydrogen peroxide behave as in the following equation?

Option E is correct.
In the above question, hydrogen peroxide is behaving as a reducing agent. Hydrogen peroxide is reducing silver from an oxidized state to a reduced state. Oxygen is been removed from silver.

In the reaction, oxygen is formed in it's pure state and hydrogen peroxide is been oxidized to form water. This chemical reaction represents an example of a Redox reaction, as one element is oxidized another is reduced. This reaction is very important in the formation of pure silver. Hydrogen peroxide is not acting as an acid, a catalyst, a dehydrating agent or an oxidizing agent in the reaction above.

In the equation, hydrogen peroxide is behaving as the reducing agent. This is because hydrogen peroxide is reducing silver from an oxidation state of +1 to 0. In addition, it is removing oxygen from the silver, which is also the definition of reduction. Meanwhile, hydrogen peroxide itself is being oxidized.

In addition, pure oxygen is also formed. This reaction is a redox reaction, with one element being reduced while the other is oxidized. The reaction is important in the synthesis of silver as the reaction can be used to produce the pure element that is not oxidized or combined with any other element.