Steam which is formed in contact with water is known as saturated steam.

Saturated steam : It is the type of steam that occurs when the liquid and gaseous phases of water exist simultaneously at a given temperature and pressure. In simpler terms, the steam is in equilibrium with the heated water.

Dry saturated steam :Dry Saturatedsteam results when water is heated to the boiling point (sensible heating) and then vaporized with additional heat (latent heating).

Superheated steam :Further heating of dry saturated steam above the saturation point, transforms it into superheated steam (sensible heating).

Hence, the correct option is (B).