The correct option is B magnetic equator
The magnetic equator is the line where the inclination is zero i.e. vertical component of magnetic field is zero, only horizontal magnetic field is present.
Hence,
Bv=Bsinθ
Bv=Bsin0∘
Bv=0
Also,
BH=B
We know
BH=Bcosθ
B=Bcosθ
cosθ=1
⇒θ=0∘
Since, a dip needle indicate the direction of magnetic field, thus a dip needle placed at the neutral point will be horizontal at the magnetic equator.