The correct option is B embryonic stem cells have the ability to develop into different kinds of body tissue
In this question, selection of correct answer lies on the knowledge of correct idiom and not mere conciseness. “Ability of” and “ability to” both are correct expressions. However, they are used differently.
“Ability of” is generally followed by a “proper” noun. This noun can be a person, an organization, a group, a thing, etc. Here we are not talking about a noun form of any word or a gerund.
When we use "ability to, it is followed by a verb.
This sentence is clearly talking about the ability of embryonic stem cells, a noun, to do something. Hence, we must use the expression “ability to” to communicate that. Notice that use of “ability of developing” is not correct here because “developing” is an ‘ing” noun form, a gerund, and not a “proper” noun.
Hence, the context of the sentence determines the correct usage of the idiom appropriate for that particular sentence.