Answer B is the correct solution because it effectively addresses all the given requirements:

1. API Gateway and SQS Integration: Amazon API Gateway can handle the unpredictable bursts of traffic by scaling automatically to meet the request demand. By implementing the RESTful API on API Gateway and integrating it with an Amazon SQS queue, the incoming data is reliably queued without any data loss. SQS provides a durable and scalable buffer layer to decouple the data ingestion from the processing logic.

2. Processing with AWS Lambda: AWS Lambda functions are well-suited to process messages from the SQS queue. Lambda can scale automatically based on the amount of traffic, ensuring that even during high-volume periods, messages are processed efficiently and without provisioning infrastructure manually.

Other options do not fit as well for the following reasons:

• Option A suggests using an ALB with an SQS queue, but SQS cannot be directly targeted by an ALB.
• Option C involves managing EC2 instances, which can introduce operational overhead and might not scale as efficiently as Lambda functions in handling bursts of traffic.
• Option D suggests using CloudFront with Kinesis Data Streams, which is not an appropriate setup for handling RESTful API traffic and involves more complexity than necessary.

Hence, option B provides a robust, scalable, and serverless approach to meet the requirements without incurring data loss.