That option that you chose, even though it is literally what the English sentence says is not correct because verbs that express a wish or feelings followed by que trigger the subjunctive and here you have the indicative: Me alegro que vas a la universidad.
This would only be correct if you say:
Me alegro de que vayas a la universidad
Me alegra que vayas a la universidad
Here is a B2 lesson with this content.
C1 is the most challenging level and students should expect more difficulty when going through the tests, otherwise it won't reflect this level.
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Test your Spanish to the CEFR standard