@Munzir,
I made a mistake. Your answer option B is correct
Explanation
Protonation of oxygen atom opens the epoxide ring forming a secondary carbo cation as well as a -OH group.
A 5 membered ring formation then occurs due delocalization of electron from =CH2 forming a tertiary carbocation. This carbocation is then attacked by water molecule and finally a -OH group is formed there releasing a proton.