A wire seems to have charges flowing through it. When a compass is kept next to it, the needle deflects. The reason for the deflection is:

The charges force the needle into deflecting

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The flow of charges have an associated magnetic field

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The needle is loosely fit

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The needle has no deflection

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Solution

The correct option is B
The flow of charges have an associated magnetic field

Flowing charges constitute an electric current. Now, we know that a current flowing through a conductor has a magnetic field associated with it. Hence, due to the influence of that magnetic field, the needle of the compass deflects.

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