B: That lax about knowing what's going on in the organization she's in charge of
I'm going with A. I have a hard time believing she would NOT know she had even one person taking part in an operation like this. We also know about the orders to use beanbags first, so this:
Grassley also wanted to know if Terry's team was under standing orders to use non-lethal force even against bandits clearly armed with assault rifles.
"I have asked that question, and my information is absolutely not," Napolitano said.
is bullshit. Note the 'my information is' crap, so she can later say "The information I had then was incorrect." So I believe.