Answer: B
Sulfur attacks the carbon bearing Cl from the back in the diaxial chair, giving a cis-fused episulfonium ion with a mirror plane through sulfur, so its two ring carbons are equivalent. Water opens the ring from the back at either carbon with equal probability. Each opening is an inversion, so both modes give trans product, and the two modes give opposite enantiomers, so the product is racemic trans-2-(methylsulfanyl)cyclohexan-1-ol.