The problem is, in an actual test, we are not allowed to make two choices so we have to analyze the language of the question and make the right call. In this context, this question is more of an exercise in reading comprehension than a mathematical problem since the actual calculation is fairly simple. So let's see what we have:
A reservoir with an inlet tap at the head and an outlet at the bottom is filled up to one-fifth of its capacity. I think that we can safely assume that both the inlet and outlet are closed at this point. From this point on, we are presented with three different scenarios each involving a certain course of action and the result thereof:
(a) The outlet is unplugged and consequently the reservoir is completely drained in 1 hour which gives us the information required to calculate the rate/efficiency of the outlet valve.
(b) The inlet tap is opened and the reservoir fills in 2 hours which gives us the information needed to calculate the efficiency of the inlet tap.
(c) This is the tricky part. The question stem asks: "In how much time will the reservoir fill to the brim if the outlet is unplugged 30 minutes after the inlet tap is opened ?" In my opinion, the answer should be the TOTAL time (the 30 minutes when only the inlet tap is in play plus the time until the reservoir is full during which period both the inlet tap and the outlet valve are in play). There are two reasons why I have made this assumption:
(1) In all three scenarios, the actions start with the reservoir one-fifth full and both the inlet and outlet closed. So the time for the result of each action to culminate (draining in the first scenario and filling to the brim in the second and third scenarios) should be calculated from this starting point. In fact, in the given context the above question can be rephrased thus: " As in Scenario (b), the inlet tap is opened but this time the outlet valve is unplugged after 30 minutes. In this case, how much time will it take to fill up the reservoir?"
(2) Option B would have been the correct choice if the above question would have used the word "after" instead of "if": "In how much time will the the reservoir fill to the brim AFTER the outlet is unplugged 30 minutes from the time the inlet tap is opened?"
So, IMO, the answer is 3 hours 30 minutes (B)