But...
For A there is no reference to how often these keys are rotated, and to rotate to a new key, you need to upload it, which is operational overhead. So not only does it not necessarily meet the 'rotate keys every year' requirement, but every year it requires operational overhead.
More importantly, the question states move the objects first, and then configure encryption, but ..."There is no change to the encryption of the objects that existed in the bucket before default encryption was enabled." from https://docs.aws.amazon.com/AmazonS3/latest/userguide/default-bucket-encryption.html
So A is clearly wrong.
For B, whilst you have to set up KMS once, you then don't have to anything else, which i would say is LEAST operational overhead.