Enthuware

I was mislead by the option:
"A Callable can return a value but a Runnable cannot" as Callable MUST return a vakue as ther is no void call() method. I was sure that callable return a value but not about the 4th option( A Callable can be used with ExecutorService but a Runnable cannot be.) so I marked the 4th.

Shouldn't be "A Callable rreturns a value but a Runnable doesn't" or something similar?

Your interpretation is valid but remember that such wording is common in the exam.
Here, can is used in the sense that it can (which is true). It doesn't allude to the fact that it must (which is also true) but not referred to here. For example, if someone asks you, what would you use if you have to return a value, you will say, "A Callable, because it can return a value." You don't say, "A Callable, because it must return a value."

HTH,
Paul.