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
The conjunction would be c. and
and is a connecting conjunction of two ideas in the same sentence
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