Initially:
- $X$ is BLOCKED because it is waiting for disk I/O.
- $Y$ is RUNNING because $X$ is unavailable.
- $Z$ is READY.
Now, the disk I/O of $X$ completes.
This causes the transition:
$X:$ BLOCKED $\rightarrow$ READY
At this moment, both $X$ and $Z$ are ready, while $Y$ is currently running.
Given the priority order:
$$X > Y > Z$$
$X$ has a higher priority than the currently running process $Y$. Since the scheduler is preemptive, $X$ immediately preempts $Y$.
Therefore:
- $X$: READY $\rightarrow$ RUNNING
- $Y$: RUNNING $\rightarrow$ READY
- $Z$: remains READY
So the final states are:
$X:$ RUNNING,$\quad Y:$ READY, $\quad Z:$ READY
Answer : B