If the IPsec tunnel is UP but the EC2 instances are not able to ping on-premises resources, it might be due to the security group settings. Security groups act as virtual firewalls for your instances, and you need to ensure that the inbound rules allow the necessary traffic.
In this case, creating a new inbound rule on the EC2 instances' security groups to allow ICMP traffic (ping) from the on-premises CIDR (Customer-Premises Equipment, CPE) would likely resolve the issue, assuming the security groups are currently configured to block such traffic.
Option A addresses the issue at the security group level by allowing ICMP traffic from the on-premises CIDR.