Answer:
The water situation can be simply described that this village suffers from economic water scarcity.
Step-by-step explanation:
A is not correct because the village is in a dire situation with water.
B is correct because the village can have a stable situation with water because of the nearby stream but because of the economic situation it suffers and has water scarcity or rather economic water scarcity.
C is not correct because there is a stream near the village so the problem is not of physical nature.
D is not correct because the village suffers only because of the economic aspect, not the physical one.