Scenario B would be correct. The rules specifically say that while it is legal to onload troops onto friendly transports, they must onload on your turn, and may only be offloaded on your next turn. The U.K may not offload the troops for you or you may not hop scotch using a transport.
Can Transports retreat?
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In one of my games I attacked an ANZAC task force (1-Fighter, CV and DD) with 1 japanese dd,1 fighters, 1 bomber and 2 loaded transports.
The match ended with ANZAC loosing the dd and damaging the CV. The DDs hit each other, the ANZAC fighter killed the Japanese fighter and the damaged CV hit the bomber.
At this point can I retreat the Japanese transports since that round of combat was over?
Can the transports retreat and drop their cargo? (Since they are now defenseless I want to get the cargo unloaded)
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My personal guess is they can choose to retreat but can not unload in a different territory than they planned.
Then again my rule book isn’t near me.
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The transports can retreat, but they can’t unload.