The sequence of folding a piece of paper and the manner in which the folded paper has been cut is shown in the following figures. How would this paper look when unfolded?

When unfolding the paper, the cuts are mirrored along the fold lines:
Unfolding across the vertical fold produces symmetric images on the left/right halves.

Unfolding across the horizontal fold produces symmetric duplicates on the top/bottom halves.
By following the specific placement of the punch cuts, the final design corresponds precisely to the layout shown in Option B.