Step 1: Idea:
Dehydration followed by hydration of the same alkene brings back the alcohol whose carbocation is most stable.
Step 2: Track the carbons:
tert-Butyl alcohol loses water to give isobutene. In the second step, $\text{H}^+$ adds to the terminal $\text{CH}_2$ to give $(\text{CH}_3)_3\text{C}^+$, the tertiary carbocation.
Step 3: Finish:
Water attacks the carbocation and a proton is lost, giving $(\text{CH}_3)_3\text{COH}$.
Step 4: Option check:
n-Butyl, isobutyl and sec-butyl alcohols would require a primary or secondary carbocation or anti-Markovnikov addition, which is not favoured.
Final Answer:
B is tert-butyl alcohol, option (D).
\[ \boxed{\text{tert-Butyl alcohol (D)}} \]