The correct option is 2 km to the west.

Let us trace Simar's path step-by-step from the starting point A, using a standard two-dimensional coordinate system where the starting point A is at the origin (0, 0). Let the positive y-axis represent North, negative y-axis represent South, positive x-axis represent East, and negative x-axis represent West.
All turns are 90-degree turns.

Step 1: Drives 10 km towards south from Point A.
Starting at A(0, 0) and moving south (negative y-direction) by 10 km, Simar reaches coordinate:
(0, -10)

Step 2: Takes a right turn and drives 7 km.
Facing south, a right turn points towards the West (negative x-direction). Moving 7 km in this direction, Simar reaches:
(0 - 7, -10) = (-7, -10)

Step 3: Turns right and drives 12 km.
Facing west, a right turn points towards the North (positive y-direction). Moving 12 km in this direction, Simar reaches:
(-7, -10 + 12) = (-7, 2)

Step 4: Takes a right turn and drives 9 km.
Facing north, a right turn points towards the East (positive x-direction). Moving 9 km in this direction, Simar reaches:
(-7 + 9, 2) = (2, 2)

Step 5: Takes a final right turn, drives 2 km and stops at Point P.
Facing east, a right turn points towards the South (negative y-direction). Moving 2 km in this direction, Simar reaches Point P at:
(2, 2 - 2) = (2, 0)

Determining the shortest distance and direction from Point P to Point A:
Point A is located at (0, 0) and Point P is located at (2, 0).
Since both points lie on the x-axis (y = 0), the shortest path is a straight horizontal line.
The distance between P(2, 0) and A(0, 0) is:
$\sqrt{{(0-2)}^2+{(0-0)}^2}=2\text{km}$
To go from P(2, 0) to A(0, 0), Simar must travel in the negative x-direction, which represents West.
Therefore, he should drive 2 km to the west to reach Point A again.