The best option that explains how irrigated commercial agriculture in arid environments creates both environmental opportunities and challenges is Option B: Irrigation increases production but potentially depletes water resources.
This option highlights the dual effects of irrigation: while it can enhance agricultural productivity, it also poses significant risks to the sustainable availability of water resources, which is particularly critical in arid regions. The potential for water depletion represents an environmental challenge as excessive irrigation can lead to long-term ecological consequences, including reduced water quality and availability for other uses.