Why would the termite need to unfold the cube? it would climb the vertical side and then take the diagonal, or take the diagonal and along the edge to A. Clever these termites you know. Further to that the question does not tell us the length of the termite. If it was 2mm long then the distance would be reduced by 2mm when as long as it was still in contact with ground as it started. There are also many more ways to unfold the cube than the way that Giz has.
"Why would the termite need to unfold the cube? " - that is just a device to show the shortest route over the surface, you are going across one face to the opposite corner then along one edge that gives a longer route. √98+7 = 16.89
Go from one corner to the middle of the edge then from there to the corner, see diagram - √(7²+14²) = 15.7
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