The statement that best explains the situation is:
The total kinetic energy from the gunpowder reaction did not all transfer to the cannonball, so some of it had to go into the cannon, which is why it moves.
In this scenario, when the cannon fires the cannonball and moves backward (recoils), the system conserves momentum. The kinetic energy of the system is divided between the cannonball and the cannon, resulting in both having kinetic energy, though not necessarily in a way that adheres to the conservation of kinetic energy in a straightforward manner. Some energy goes into the cannon (causing it to recoil), indicating that not all energy was converted into the kinetic energy of the cannonball.