Reviving this because I had the same problem and all the answers in this thread were not satisfying. I figured it out, and the solution is the question is garbage (except it is useful as food for thought). Here's the solution:
The hot air balloon moves at constant velocity and has no acceleration acting on it because the Force gravity (mg) and Force buoyancy (pVg) are equal. When the package is dropped, force gravity decreases and Force buoyancy will now accelerate the balloon upward with a decreased mass and increasing velocity. Notice the acceleration will continue to accelerate the balloon. The velocity will increase, increase, increase, and increase.
With this in mind, choice A, B or D can actually be true and choice B is TECHNICALLY the best answer.
The INSTANT the package is dropped the acceleration has not increased the velocity at all. Only the mass has decreased and thus momentum has decreased (Answer B)
At a short period of time (depending on the acceleration), the velocity will increase to an amount that is exactly proportional to the decrease in mass (answer D).
Since the velocity is just increasing and increasing because we now have an acceleration, the momentum of the balloon will continue to increase (Answer A). You can equate the increasing momentum of the balloon to the momentum of the package over time. If someone dropped a package on your head from 1cm above you, it wouldn't hurt much because it has little momentum. If they dropped it a few feet above, it might give you a good bump because it gained momentum. If a package dropped from a hot air balloon and hit you in the head, you just got knocked out by a massive amount of momentum. The acceleration is constant and velocity continues to increase. The balloon is doing the same.
Answer choice C is completely wrong because the force of buoyancy changed. In conclusion, this question is garbage. I put D originally but technically (by the wording of INSTANT) it should be B. And yet, TBR says its A which makes some sense considering it will continue to gain momentum forever (hypothetically)