An astronaut in space experiences weightlessness because both the astronaut and the satellite are in free fall towards Earth. In orbit, both the astronaut and the satellite are moving together, and they are both accelerating at the same rate due to Earth's gravity. Because of this, the astronaut does not experience any force acting on their body, and they feel weightless.
This phenomenon occurs even though the gravitational force is still acting on them, but the feeling of weightlessness arises because there is no normal force exerted by a surface. Both the astronaut and satellite are in free fall, experiencing microgravity.
Thus, the correct answer is (B) both the astronaut and the satellite are in free fall towards Earth.