There is no argument: use option A.
Option B is absolutely out of the question because you would be loading images that may be 6-8 times larger in memory (as a texture) on a device (3GS) that has a quarter of the memory of an iPad 3 or 4 (256 MB vs 1 GB). Not to mention the additional processing power needed to render a scaled down version of such a large image. There's a good chance it won't work at all due to running out of memory and running too slowly (have you tried?).
Next, it stands to reason that at 95 MB you might still not get your app below 50 MB with option B. The large Retina textures make up two thirds or three quarters of your bundle size , the SD textures don't weigh in much. This is the only app bundle size target you should ever consider because below 50 MB users can download your app over the air, at over 50 MB they'll have to sync via Wifi or connected to a computer. If you can't get below 50 MB, it really doesn't matter if your bundle size is 55 MB or 155 MB.
Finally there are better options to decrease bundle size. Read my article and especially the second part.
If your images are PNG the first thing you should try is to convert them all to .pvr.ccz and as NPOT texture atlases (easiest way to do that: TexturePacker). You may be able to cut down bundle size by as much as 30-50% without losing image quality. And if you can afford to lose some image quality there are even greater savings possible (plus additional loading and performance improvements).