Step 1: Track the carbons:
Ethyl cyanide has $\text{C}_2\text{H}_5$ plus the nitrile carbon, three carbons in all. So B must be a three-carbon compound, ruling out ethanoic acid and ethanamide.
Step 2: Track the stages:
First stage adds one water to give the amide A: propanamide. The question says the second stage gives B plus $\text{NH}_3$. An amide loses ammonia only when it is hydrolysed to the acid.
Step 3: Conclusion:
So B is $\text{CH}_3\text{CH}_2\text{COOH}$, propanoic acid. Propanamide is A, not B.
Final Answer:
Option (C).
\[ \boxed{\text{Propanoic acid (C)}} \]