if there is a hole in the tank, the hole at the bottom will ahve greater velocity? why? because according to bernoulli, the P term on both side are P (atm) and they are equal. then term pgh of the top valve is higher than the bottom, thus the velocities of the bottom have to be higher than the top. Your reasonning that the top valve having higher velocity only apply to two point of identical height. So, answer B should be picked between A and B.
In the pipe, you can use flow rate equation and find that the narrow part have higher velocities than the wide. so D is picked from C and D.