Final answer:
Musicians and record labels are paid from the Statutory license obtained by Pandora from SoundExchange.
Step-by-step explanation:
For Pandora to offer streaming services, they must obtain a Statutory license from SoundExchange. This license allows Pandora to legally stream music to its users.
The musicians and record labels are paid from this license, as it covers the royalties owed for the music being streamed. So, the correct answer is B) Musicians and Record Labels.