Answer B. (Future perfect tense is used, as the sentence refers to something that will be completed by some point in the future.) is correct.
B is correct because the event which will happen in the future (the baking of the cakes) will also have ended.
I will have baked is a correct form of future perfect, because future perfect is made with the following construction:
Subject + will have + past participle
wait didn't you already answer it
In my opinion number A and number B is the best way to find the correct answer for a sentence completion question on reading test.
Explanation:
hope it helps you
Authors can exaggerate a time in history when doing fiction because it is fake, they also use vocabulary for the age gap they are writing for so the reader can best understand it based on their level of reading