The correct answer is B. Exactly when it hits the ground.
At the moment the ball hits the ground, it comes to a stop, which means its velocity is zero at that instant. Since kinetic energy is calculated as \( \frac{1}{2}mv^2 \) (where \( m \) is mass and \( v \) is velocity), when the velocity \( v \) is zero, the kinetic energy is also zero. After hitting the ground, the ball will have zero kinetic energy just before it starts to compress and then begins to bounce back.