The correct option is B CuI2 is formed
Copper sulphate reacts with potassium iodide to form cuprous iodide and iodine.
2CuSO4+4KI→Cu2I2↓+I2+2K2SO4
Thus, CuI2 is not formed in this reaction.
Hence, the option B is incorrect and option A is correct.
The liberated iodine is titrated with sodium thiosulphate to form sodium tetrathionate.
2Na2S2O3+I2→Na2S4O6+2NaI
Iodine is reduced and sodium thiosulphate is oxidized.