The correct statement is B. The F₁ generation will have only plants with yellow seeds, but the F2 generation is likely to include both plants with yellow seeds and plants with green seeds.
The law of segregation states that the two alleles for a trait separate during gamete formation and end up in different gametes. In the F1 generation, the yellow allele masks the green allele, so all of the plants will have yellow seeds. However, in the F2 generation, the offspring will receive one allele from each parent during fertilization, so some offspring will have yellow seeds and some will have green seeds, reflecting the separation of the alleles.