The key observation that helps solve (a) and resolves (b) is to look for the possible neighbors for the number 16.
A neighbor of 16 is a number that, when added to 16, results in a perfect square. One candidate is the number 9, since 16+9=52.
There are no others, because the next perfect square after 25 is 36, and the largest sum we can obtain from two numbers between 1 and 16 is 15+16=31.
(a) Since 16 has only one possible neighbor, it must be at an end. Starting with 16, we obtain the solution below.
16−9−7−2−14−11−5−4−12−13−3−6−10−15−1−8
(b) For it to be possible to place all the numbers from 1 to 16 around a circle, every number would need to have two neighbors. But the only possible neighbor for 16 is 9, making it impossible to construct a circular arrangement.