B. Azure SQL Database Business Critical
Azure SQL Database Business Critical tier is designed to provide high availability with zero data loss during failover, which meets one of the main requirements of the scenario.
Additionally, Azure SQL Database Business Critical tier offers zone redundant configurations, which means that replicas of the data are stored in different availability zones. This means the database will remain available in the event of a zone outage, meeting another requirement of the scenario.
Azure SQL Managed Instance General Purpose, while providing automatic backups and high availability within a single region, doesn't support the required zone redundancy.
Please note, while Business Critical tier might appear costly, the requirement is to minimize costs, not to choose the least costly option. Considering the high availability and zero data loss requirements, Business Critical tier would be the most cost-effective choice.