ANS:B - above the centroid

A floating body attains stable equilibrium if its metacentre is above the centroid. The metacentre is a point in a floating body's cross-section where the buoyant force intersects with the vertical line passing through the centre of buoyancy. In stable equilibrium, the metacentre must be above the centroid (center of mass) of the floating body. This ensures that when the body is displaced from its equilibrium position, the buoyant force acting on it generates a restoring moment that tends to return the body to its original position. Therefore, the correct statement is: above the centroid.