I don’t think it’s A here. App-ID is for identifying applications, not devices. Device-ID does the device discovery/classification, which is what IoT security profiles need. Sometimes easy to mix them up because both are core Palo Alto features! Pretty sure B is correct but open to other thoughts if I missed something.
Pretty sure it's A here since App-ID does all the application classification, and I think IoT profiles would use that to identify devices. Device-ID sounds more about user logins to me. If the question's really asking about device types on the network, seems like App-ID could fit too.
A