Answer:
B. This village suffers from economic water scarcity.
Explanation:
Economic water scarcity is the lack of water management and inadequate supply of water resources. Ill management of water resources lags behind meeting the human needs. The water availability is sound in the areas but it is because of the mismanagement that the people undergo the scarcity of water to cope up with their needs and consumption.
In the given excerpt, it is clear that the village has the availability of water resource in the form of the stream. It is the lack of management because of which the people living there faces water issues.