1998 AHSME Problem 29

A point (x,y) in the plane is called a lattice point if both x and y are integers. The area of the largest square that contains exactly three lattice points in its interior is closest to

\mathrm{(A) \ } 4.0 \qquad \mathrm{(B) \ } 4.2 \qquad \mathrm{(C) \ } 4.5 \qquad \mathrm{(D) \ } 5.0 \qquad \mathrm{(E) \ } 5.6

Full credit goes to MAA for authoring these problems. These problems were taken on the AOPS website.