Answer: B
The compound is 1-methylspiro[3.4]octane. The smaller ring (cyclobutane) is numbered first, starting next to the spiro atom: C1, C2, C3, then spiro C4, then C5 to C8 in the five-membered ring. The methyl sits on the carbon adjacent to the spiro atom in the small ring, so its locant is 1.