You are climbing up the hill. Your muscular energy is transformed into kinetic and potential energy.
The correct option is B True
While you climb up the hill, you are doing work against gravity.
Since you are in motion during climbing, some part of the muscular energy is transformed into kinetic energy as it is the energy possessed by an object by virtue of its motion.
Also you are gaining some height or in turn potential energy during climbing.
Thus, your muscular energy is transformed into kinetic and potential energy while climbing up to the hill.