Step 1: Relationship between frequency and tension.
The frequency of a vibrating wire is proportional to the square root of the tension, i.e.,
\[
f \propto \sqrt{T}
\]
Let the initial frequency be \( f_0 \) and the initial tension be \( T_0 \). If the tension is increased by 2%, the new frequency will be \( f_1 \), and we have:
\[
\frac{f_1}{f_0} = \sqrt{\frac{T_1}{T_0}} = \sqrt{1.02}
\]
This gives a new frequency \( f_1 = f_0 \times \sqrt{1.02} \). The beat frequency is given by the difference between the two frequencies:
\[
\text{Beat frequency} = |f_1 - f_0|
\]
We are given that the beat frequency is 5 Hz. Therefore,
\[
|f_1 - f_0| = 5 \quad \Rightarrow \quad |f_0 \times (\sqrt{1.02} - 1)| = 5
\]
Step 2: Solving for the initial frequency.
Using the approximation \( \sqrt{1.02} \approx 1 + 0.01 \), we get:
\[
|f_0 \times (1.01 - 1)| = 5 \quad \Rightarrow \quad f_0 \times 0.01 = 5 \quad \Rightarrow \quad f_0 = 500 \, \text{Hz}
\]
Step 3: Conclusion.
The initial frequency of each wire is 500 Hz, which corresponds to option (B).