Step 1: Differentiate the curve equation.
We are given the curve equation \( y^2 = ax^3 + b \). Differentiate both sides with respect to \( x \):
\[
2y \frac{dy}{dx} = 3ax^2
\]
Step 2: Find the slope at the point.
At the point \( (1, 2) \), we substitute \( x = 1 \) and \( y = 2 \) into the equation to find the slope \( \frac{dy}{dx} \).
Step 3: Use the point of tangency condition.
Using the point \( (1, 2) \) and the condition that the line is tangent to the curve, we solve for \( a \) and \( b \). We find that \( a + b = 4 \), corresponding to option (C).