By Bernoulli Theorem, We know, that for any two points in the pipe, total energy would be same.
Pressure Energy + K.E. of 1st pipe = Pressure Energy + K.E. of 2nd pipe
[ No need to consider Potential energy as height isn't mentioned]
P₁ + mv₁²/2 = P₂ + mv₂²/2
So, we know, P + mv²/2 = constant
As value of kinetic energy is larger in larger in 2 in. pipe [ 'cause area is indirectly proportional to velocity ], Value of pressure energy would be smaller in it. So, pressure energy will be higher in the pipe of 3 in.
In short, option A would be your correct answer.
Hope this helps!