The question's answer is B. The hedge fund and the manufacturer both have wrong-way risk exposure to Bank HJK.

From the hedge fund's perspective, as interest rates rise, both Bank HJK's and Bank PQR's equity values would decline due to their highly correlated performances. This would increase the value of the long put option on Bank PQR that the hedge fund holds, resulting in higher exposure to Bank HJK. Since the hedge fund's exposure to Bank HJK is increasing as Bank HJK's credit quality is deteriorating, this represents wrong-way risk.

Similarly, for the manufacturer, the credit spread of Bank HJK is increasing, which is negatively impacting its credit quality. At the same time, the credit spread of Bank PQR, which the manufacturer has a long CDS position on, is also likely to increase due to the positive correlation between credit spreads of different banks in the same market. As a result, the manufacturer's exposure to Bank HJK is increasing as Bank HJK's credit quality is declining, which is another example of wrong-way risk.

In summary, both the hedge fund and the manufacturer are exposed to wrong-way risk with respect to their counterparty risk to Bank HJK, as their exposures increase when Bank HJK's credit quality is declining.