The correct option is B Subtraction
Subtraction should be done to outside pressure reading and the difference in the height of mercury, if the level of mercury inside a gas tube is higher than the level in the reservoir.
When the level of mercury inside a gas tube is higher than the level in the reservoir, the pressure of gas is lower than atmospheric pressure. Hence, the pressure of gas can be obtained by subtracting the difference in the height of mercury from atmospheric pressure.