For DVD, there is a limit of one gig of menu and associated content. Basically everything other than your timeline assets. So subject to such practical limits, you would:
Menu with Button "Question 1." button is linked to a chapter marker for question 1 on the timeline. That chapter has an end action set for Menu "Answer 1." The correction answer button is linked to a menu with another question button, or goes straight to the chapter for Question 2. The 3 incorrect answer buttons go back to Question 1 chapter. The user will be in a loop until they get it right.
Encore is not made for this and will be clumsy. Programs with "scripting" (Encore does not have it) will make this more possible.
But DVD is not made for interactive functioning.