By default we consider hierarchical access - because that is the common implementation and simultaneous access cache has great practical difficulty. But here the question is a bit ambiguous -- it says to ignore search time within the cache - usually search is applicable for an associative cache but here no such information given and so we can assume it is the indexing time in to the cache block.
Access time for hierarchical access,
$ = t_1 + (1-h_1) \times t_2 + (1-h_1) (1-h_2) t_m$
$ = 1 + 0.2 \times 10 + 0.2 \times 0.1 \times 500$
$= 13ns.$
Option A.
PS: We should follow simultaneous access only when explicitly mentioned in question as hierarchical access is the default in standard books.