The correct option is (B) Maharashtra, Karnataka and Andhra Pradesh.
The Krishna and Godavari rivers flow through Maharashtra, Karnataka, and Andhra Pradesh, making these the primary states involved in the inter-state water dispute. This question is from the chapter on Water Resources / Federalism context. The source passages provided do not directly address this topic, but this is standard CBSE Class 10 Geography/Political Science content. Note: since no matching source passage was provided, answer is based on prescribed NCERT content.