B. Implement SSL/TLS encryption for data transmission between the IoT device and the mobile app.
To protect against Man-in-the-Middle (MitM) attacks, the most effective solution among the ones listed is to B. Implement SSL/TLS encryption for data transmission between the IoT device and the mobile app. This type of encryption ensures that even if an attacker intercepts the communication, they would not be able to decipher the contents, thereby preventing them from manipulating the messages.
While CAPTCHAs are useful for verifying that a user is a human, they do not encrypt data transmission. Limiting the range of the IoT device may reduce the attack surface but does not protect data that is transmitted outside that range. Changing the IoT device's IP address might obscure the device from a potential attacker but does not protect the actual data being transmitted.