The correct option is B The direction in which the water flies is always tangential to the rim of the wheel.
The direction of velocity in circular motion is at a right angle to the radius and centripetal force acts towards the center and centrifugal force outwards. Once water loses contact from the wheel at point A, centripetal force disappears and it moves in a straight line tangentially to OA which is the direction of velocity at that point due to the centrifugal force. This has got nothing to do with the speed of the cycle. Once, the water loses contact, it will move tangentially, only that the speed of linear motion will be greater because higher speeds means higher centrifugal force.