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Three things happen when when 3 duplicate ACK's are received.

  • New Threshold = $\frac{\text{CWND}}{2}$
  • New CWND = New Threshold value calculated above***
  • The TCP software starts congestion avoidance phase. 

***Some implementation add three segment sizes to the threshold.But this is not always true. 

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According to forouzan Book.

In Reno TCP, if three duplicate ACKs arrive, TCP moves to the fast-recovery state and remains there as long as more duplicate ACKs arrive. the cwnd starts with the value of ssthresh plus 3 MSS

Option B is correct.

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