Answer: B
Ionisation (or concerted migration) at the primary carbon is accompanied by migration of a ring C-C bond to the CHX2 carbon, expanding the four-membered ring (relief of ring strain) to a five-membered ring. The positive charge ends on the carbon that carries the methyl group, giving the tertiary 1-methylcyclopentyl cation, which is trapped by water to 1-methylcyclopentan-1-ol.