To determine which object has the most kinetic energy, we need to consider their states of motion and their respective positions.
Since Object 1 was released first, it has been falling for a longer duration than Object 2. Kinetic energy (KE) is given by the formula:
\[ KE = \frac{1}{2}mv^2 \]
where \( m \) is the mass and \( v \) is the velocity of the object. Both objects are identical, meaning they have the same mass. Thus, the kinetic energy will depend on the square of their respective velocities.
Since Object 1 has been falling longer, it will have acquired more speed compared to Object 2, which has just been released and is still at rest. Therefore, Object 1 will have more kinetic energy because it has a higher velocity.
Thus, the correct answer is B. Object 1.