Internal and External Fragmentation
I have found the answer. External fragmentation happens over time when small spaces in memory are not effectively employed. This leads to hole everywhere in memory. Therefore it cannot be determined from the chart that there is external fragmentation.

On the other hand, internal fragmentation is the idea when there is over-allocation of memory space to a process. In the above chart, internal fragmentation depends on the page/frame size. Since it is possible for a page to only have one byte of data then larger page sizes have more internal fragmentation. Design 3 has the most spread which is the answer.