If it’s an entrance exam for a university in America (and it clearly is), only the first option (with “be”) is correct. This is the present subjunctive (you can Google it for more information), and its proper use is still required in educated American English. In casual conversation, people (no one that I know, however) may simply use the indicative, although in the sentence you’ve given, I can’t imagine any American not using the subjunctive. British speakers, however, often don’t bother to use the subjunctive, and you might come across the version with “are” (although “be” is still considered to be the “correct” version). I doubt, however, that a British exam would test for your knowledge of the subjunctive these days.