The equation given is:
\[z = (x - a)^2 + (y - b)^2\]
To eliminate the constants \(a\) and \(b\), we differentiate with respect to \(x\) and \(y\).
Step 1: Differentiate with respect to \(x\):
\[
\frac{\partial z}{\partial x} = 2(x - a)
\]
Step 2: Differentiate with respect to \(y\):
\[
\frac{\partial z}{\partial y} = 2(y - b)
\]
Square both partial derivatives and add them:
\[
\left( \frac{\partial z}{\partial x} \right)^2 = 4(x - a)^2,\quad \left( \frac{\partial z}{\partial y} \right)^2 = 4(y - b)^2
\]
Adding these results in:
\[
\left( \frac{\partial z}{\partial x} \right)^2 + \left( \frac{\partial z}{\partial y} \right)^2 = 4(x - a)^2 + 4(y - b)^2
\]
Recognize the right-hand side as \(4z\):
\[
4z = (x - a)^2 + (y - b)^2 = \frac{1}{4}\left(\left( \frac{\partial z}{\partial x} \right)^2 + \left( \frac{\partial z}{\partial y} \right)^2\right)
\]
Thus, the partial differential equation becomes:
\[
4z = \left( \frac{\partial z}{\partial x} \right)^2 + \left( \frac{\partial z}{\partial y} \right)^2
\]
This matches the first option, confirming it as the correct choice.