Hi
First of all, both your failures and the way you turned them around are simply stupendous.
But, I would vote for B. First of all, as you are applying to a business school, your failures and subsequent success in an entrepreneurial venture makes a lot of sense. It not only gives the adcoms an idea of you as a person but also of your leadership potential in a business setting and how their education could polish you further for greater successes.
although I would advice you to tone down the language when you are describing your failures. Yes you made mistakes and you were unprepared but you should't risk sounding careless or deliberate in having made them. While writing about your mistakes you should discuss that they happened because of choosing a wrong path or miscalculation of certain parameters or things beyond your control, but not once should it look like you didn't try hard and did not give your best shot.
Your experience with the music band is also worth mentioning to the adcoms. If there is any other essay where you are asked to discuss your personal history, I think you should bring this in as it would tell the adcoms more about you as a person and it would also set you apart from other applicants.
Hope this helps
All the best_______________________________________________________________________________________________________
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