Correct option is B
A good research area was being sought by Nandita where a good proposal could be prepared by her for submission. This option correctly transforms the active sentence into passive voice by focusing on the action being performed by Nandita and reflecting the ongoing process using "was being sought." It retains the future potential expressed in "could be prepared," aligning with the intent of the active voice.
Grammatical rule used: Passive voice constructions often employ a form of the verb "to be" plus the past participle of the main verb to shift focus from the doer to the recipient of the action. Example: The manuscript was being reviewed by the editor to ensure it was ready for publication.