The correct option is C The string is perfectly horizontal two times in the circular path, once on the way up and once on the way down. The only difference in the net force between these situations is the direction of the tension force.
Since the ball rotates in circle at constant rate, the speed of ball at all points is the same. Hence the centripetal force mv2R is same at all points. This is provided by the gravitational force acting downwards and the tension acting on it towards the center. Acceleration of the ball is always radially inward (towards the centre)
At the top of the path,
mv2R=T+mg
⇒T=mv2R−mg
At the bottom of the path,
T=mv2R+mg
When the spring is horizontal, tension will be equal to centripetal force, only its direction will be opposite in the two cases (when it is going up and when it is coming down)
So, option c is correct.