Step 1: Work-energy principle.
Using the work-energy principle, the work done by friction is equal to the change in kinetic energy:
\[
\text{Work} = F_{\text{friction}} \times d = \text{Change in kinetic energy}
\]
The force of friction \( F_{\text{friction}} = \mu M g \), and the initial kinetic energy is \( \frac{P^2}{2M} \).
Step 2: Equation for stopping distance.
The stopping distance \( d \) is found by equating the work done to the kinetic energy:
\[
\mu M g \times d = \frac{P^2}{2M}
\]
Solving for \( d \):
\[
d = \frac{P^2}{2 \mu g M^2}
\]
Step 3: Conclusion.
Thus, the correct answer is (A) \( \frac{P^2}{2 \mu g} \).