To answer this question, we need to understand how privileges and the "WITH GRANT OPTION" work in Oracle.
When user A is granted SELECT privilege on sh.products with the "WITH GRANT OPTION," it means that A can also grant this privilege to other users. In this case, A grants SELECT privilege on sh.products to user B.
However, when user A's account is dropped, all the privileges granted by A are also revoked. This means that user B will lose the SELECT privilege on sh.products because it was originally granted by user A. Therefore, the correct answer is A: B loses his SELECT privilege on sh.products.