Answer
A. that the initial gravitational potential energy of the masses transformed into kinetic energy of the paddles and then to thermal energy in the water
Explanation
James Joule allowed some water to fall from a height of 1 foot. the water would turn a paddle wheel at the bottom causing a temperature of water to raise.
The height form which the water fell, mass and the temperature of water was measured and used to calculate mechanical equivalent of heat.
From the choices given the best answer is A. that the initial gravitational potential energy of the masses transformed into kinetic energy of the paddles and then to thermal energy in the water.