EDIT: Well, I goofed. Sorry about that! Fixed and simplified.
(Before starting, I'm going to assume that you're solid with the concept of Q = AV. The flow speed at a any point in the pipe depends only on the diameter of the pipe at that point. In other words, water flows at the same speed at A and C, since the diameter is the same, and slower at B, since the diameter is larger. Also, I'm going to assume familiarity with the fact that pressure drops at higher flow rates.)
Let h_a, h_b, and h_c represent the height of each respective water column as measured from the floor. For simplicity, I'm going to treat the distance from the floor to the horizontal line that passes through the center of the pipe at A and B (but that passes below C) as being 0.
First, I will show that h_b > h_a. Next, I will show that h_a = h_c.
So lets look at the center of the pipe at A. Call the pressure at that point P_a. Look at the column of water above A that is at a height of h_a. The pressure, P_a, at a depth of h_a, is
🙂 P_a = (rho)(g)(h_a).
Similarly,
🙂 P_b = (rho)(g)(h_b).
We know that P_a < P_b from the fact that the flow speed at A is greater than at B. By the last two smiley-formatted equations, P_a < P_b implies that (rho)(g)(h_a) < (rho)(g)(h_b). This means that h_a < h_b.
Now, to show that h_a = h_c, we will need to let P_c denote the pressure at a point that is NOT the center of the pipe at C. Choose a point on the horizontal line that connects the centers of A and B but is in the skinny section to the right of the fat section B. Call this point pointC. Let P_c be the pressure at pointC.
Measured from the top of column C, pointC is at a depth of h_c, so
🙂 P_c = (rho)(g)(h_c).
The center of the pipe at A and pointC are at the same height, and the pipe is of the same diameter at each of these two points. Thus, P_a = P_c. From before, we had that
🙂 P_a = (rho)(g)(h_a).
Setting these last two smiley-formatted equations equal to each other yields
🙂 (rho)(g)(h_a) = (rho)(g)(h_c)
which shows that h_a = h_c.