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.
Do Subs Prohibit Loading of Escorted Transports
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Can a Trprt escorted by a DD move into a SZ with an enemy Sub during CombatMove and load the Trprt and continue on it’s way to conduct an Amphib attack ?
Or does the Sub make the SZ hostile preventing this ?
Thanks

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The answer is in the same paragraph you posted. A transport does not need any warships to LOAD a unit in Combat Movement. It just needs a warship to UNLOAD for an amphibious assault if there is a lone submarine present.
The key is the sea zone is friendly if there is just a submarine there when you loaded as per the last sentence below.

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