Step 1: Using conservation of momentum.
Since there is no external force, the total momentum before and after the collision is conserved. Let the initial velocity of the first ball be \( v_1 = 10 \, \text{m/s} \) and the mass of the first ball be \( m_1 = 2 \, \text{kg} \), and the mass of the second ball be \( m_2 = 3 \, \text{kg} \) which is initially at rest. After the collision, both balls move together with velocity \( v_f \). The conservation of momentum gives:
\[
m_1 v_1 = (m_1 + m_2) v_f
\]
Substituting the given values:
\[
2 \times 10 = (2 + 3) v_f
\]
\[
v_f = \frac{20}{5} = 4 \, \text{m/s}
\]
Step 2: Finding the initial and final kinetic energies.
The initial kinetic energy is:
\[
KE_{\text{initial}} = \frac{1}{2} m_1 v_1^2 = \frac{1}{2} \times 2 \times 10^2 = 100 \, \text{J}
\]
The final kinetic energy is:
\[
KE_{\text{final}} = \frac{1}{2} (m_1 + m_2) v_f^2 = \frac{1}{2} \times 5 \times 4^2 = 40 \, \text{J}
\]
Step 3: Calculating the loss in kinetic energy.
The loss in kinetic energy is:
\[
\Delta KE = KE_{\text{initial}} - KE_{\text{final}} = 100 - 40 = 60 \, \text{J}
\]
Step 4: Conclusion.
Thus, the loss in kinetic energy due to the collision is 60 J, corresponding to option (A).