A floating body is in stable state. Which one of the following is correct?

For a floating body, stability is determined by the relative position of the metacentre (M) and the centre of gravity (G), not by the relative position of G and the centre of buoyancy (B). A floating body is in stable equilibrium if and only if the metacentre lies above the centre of gravity (GM > 0); the restoring couple then brings the body back to equilibrium when tilted. The centre of gravity may well be above the centre of buoyancy in a stable floating body (as in ships), so option (a) is not a necessary condition. The correct criterion for stable floating equilibrium is that G lies below M.