Step 1: Walking (2 km).
Arup: \(t_A=\frac{2}{4}=0.5\) hr \(=30\) min \(\Rightarrow\) reaches at 8:30.
Swarup: \(t_S=\frac{2}{5}=0.4\) hr \(=24\) min \(\Rightarrow\) reaches at 8:24.
Swarup is \(6\) minutes ahead.
Step 2: Boat (4 km).
Each rows for \(30\) min \(\Rightarrow\) Swarup boats 8:24–8:54, Arup 8:30–9:00.
Lead after boating remains \(6\) minutes (Swarup at 8:54; Arup at 9:00).
Step 3: Car (20 km).
At 9:00, Swarup already has a \(\,6\)-minute head start and has driven
\(40\times 0.1=4\) km. Relative speed \(=50-40=10\) km/hr.
Time for Arup to catch up \(=\frac{4}{10}=0.4\) hr \(=24\) min.
Catch-up time \(=9{:}00+24\text{ min}=9{:}24\) AM.
Check: In these 24 minutes, Arup drives \(50\times 0.4=20\) km and Swarup (from 8:54 to 9:24 is 30 min) drives \(40\times 0.5=20\) km. They meet at point \(B\).
Final Answer:
\[
\boxed{\text{(D) 9:24 AM}}
\]