The correct option is D the total momentum of the ball and the earth is conserved.
It's a matter of conversion of potential energy energy into kinetic energy and vice versa. The higher the drop distance, the more potential energy the ball has. As it falls the potential energy is transferred into kinetic energy. When the ball hits the floor the ball is squeezed transferring the kinetic energy back into potential energy, like in a spring. Then the ball rebounds, although with a slightly lower velocity due to slight energy loss, and bounces back up losing its vertical kinetic energy back into potential energy. The total momentum of the ball, wall, and Earth is equal before and after the collision.