In a cloud we have something called warm up drafts, and cold downdraft, the warm updraft takes water up in a cloud, while the cold downdraft takes water out of the cloud. In a cloud is something called the freeze level, the freeze level is when the temperatures drop below freezing. Now when water is taken up the warm updraft into the freezing level that water droplet then freezes which due to its weight then falls down and gets caught in the updraft again. In till it is finally taken out of the cloud by the downdraft.
Hail is formed by the "repeated circulation of raindrops above and below the freezing level in a cloud" or option A.
