B is correct. First, calculate the portfolio value at the beginning and end of each period and the dividends received over the three years:

Then, calculate the holding period return (HPR) for the three years by using the following formula:
HPR = (P_t+1 - P_t + D_t+1)/P_t
HPR_{Year 1} = (€1,680- €1,600 + €30)/€1,600 = 6.88%
HPR_{Year 2} = (€2,625- €2,520 + €60)/€2,520 = 6.55%
HPR_{Year 3} = (€2,475 - €2,625)/€2,625 = -5.71%
The time-weighted return (TWR) is found by taking the geometric mean of the three holding period returns: