The reason for this behaviour is that you set both option "Provide option to try a question again" to Yes and "Maximum number of attempts" greater than 1. These options are incompatible! Actually, I've always thought that the "Provide option to try a question again" is misleading and should never be used.
What you call an endless cycle is not endless. If the student keeps selecting the wrong answer, and you have set both options as explained above, then the student will be stuck on the same page for as many times as the "Maximum number of attempts" you set!
OK now?
Joseph