When you use distillation to separate water from dissolved sugar, the process involves heating the liquid solution (water with sugar dissolved in it) to evaporate the water, turning it into a gas (water vapor), and then cooling that vapor to condense it back into a liquid.
The correct phrases to describe this process are:
B: from a liquid to a gas and back to a liquid.
In summary, the water transitions from a liquid (the sugar-water solution) to a gas (water vapor) upon heating, and then returns to a liquid state when it is cooled during the distillation process.