The correct option is C Water in beaker B is hotter than that in A.
Since the balloon in beaker B is inflated, we can say that the air inside the bottle dipped in beaker B occupies more volume than air inside the bottle dipped in beaker A.
We know that air expands on heating. This means that at higher temperature, air occupies more volume.
Thus, we can conclude that the temperature of air in the bottle dipped in container B is greater than that of air in the bottle dipped in beaker A.
Hence, water in beaker B is hotter than water in beaker A.