The correct answer is B.

$$\beta = \rho \frac{\sigma(\text{portfolio})}{\sigma(\text{benchmark})}$$

Where:
$\beta =$ beta of the portfolio
$\rho =$ correlation between the portfolio and the benchmark
$\sigma(\text{portfolio}) =$ standard deviation (volatility) of the portfolio
$\sigma(\text{benchmark}) =$ standard deviation of the benchmark

$$\beta = 0.65 \times \frac{0.06}{0.03} = 1.3$$