Answer: Option B
Explanation:
Letters were exchanged between the plaintiff and defendant on the subject of the accident.
The active voice should be
The plaintiff and defendant exchanged letters on the subject of the accident.
Passive voice is most of the time used to emphasize/point out the action/verb and the object rather than the subject.
The man who is outside is freezing in the cold.
The beaver who is smoking is sitting on the porch.
Josh kneels at the altar while praying.
Tim rides in the back of the truck.
My dad talks with my teacher at the parent teacher conference.