Rainwater is the primary source of water. Rain water is considered as a pure and fresh form of water.

On Earth, only 3% of water is fresh water. Most of the water is in the form of ice caps, glaciers and groundwater, while all lakes, rivers and swamps combined only for a very small part that is 0.3% of the earth's total freshwater reserves.

In the process of condensation very small water droplets from the atmospheric air come together and form clouds. The heavier the rain drops gets bigger the cloud gets.

Evaporation: The sun evaporates some amount of water from different sources. Evaporation prepares the cycle for the next step, that is condensation. 
Condensation: The water vapour then condensed into clouds. These clouds further go to Precipitation. 
Precipitation: When the droplets in the clouds get too big they fall as rain, hail, snow, and sleet.

A larger number of people drawn  water from all of the above natural sources i.e  wells, tube wells, hand pumps etc.

The circulation of water between ocean, land and atmosphere is known as the water cycle.

 The energy that powers the water cycle come from the sun.

Rain water is the purest form of water as it does not contain any minerals, ions, dust particles etc. thus it can be used in lab.

The main source of water for inland lakes is ground water.

Potable water means drinking water. Well, river and lake contain drinking water as these all contain either rainwater and groundwater which is suitable for drinking. The sea which contains salty water that is not suitable for drinking is not a source of potable water.

The water cycle is driven by the sun.

The water in the oceans and seas has many salts dissolved in it. The most abundant ions in sea water are $Cl^-, Na^+. SO _4^{2-}, Mg^{2+}, K^+$.

True. Well water is an example of surface water because it appears on the surface and it is not ground water.

Option B is correct.