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$$\left(ax+by\right)\left(ax+by\right)=\left(ax+by\right)^2=a^2x^2+2abxy+b^2y^2$$
$$\therefore\ $$ $$(ax+by)$$ is a factor of $$a^2 x^2 + 2abxy + b^2 y^2$$
Hence, the correct answer is Option B
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