The correct option is D Water level will rise to a height v22g and then stop.
Initially, the water flowing out will be less than that flowing into it. Hence, the water level will go on rising. When the water level is h, the velocity of efflux =√2gh. When this becomes equal to the velocity of inflow, the level will become steady as the area of cross section of the filling tube and area of cross section of the hole are equal. This height is given by Torricelli's theorem,
v=√2gh or v22g=h