Correct Option: B

Method 1 to solve the equation.
Let us assume Cost Price (C.P) of 1 liter milk be Y rupees.
According to question,
Selling Price (S.P) of 1 liter of mixture Y rupees. (Selling price should be same as Cost price)
Profit = 50/3 %
Let us assume Cost price of 1 Liter of Mixture of Water and Milk = C
Cost price of 1 Liter of Mixture of Water and Milk = Selling price of Mixture - Profit
C = Y - C x 50/3%
⇒ C = Y - C x 50/3x100
⇒ C = Y - C x 1/3x2
⇒ C = Y - C/6
⇒ Y = C + C/6
⇒ Y = (6C + C)/6
⇒ Y = (6C + C)/6
⇒ Y = 7C/6
⇒ C = 6Y/7
Since in Y rupees we will get 1 liter milk.
Hence in 1 rupees we will get 1/Y liter milk.
Hence in 6Y/7 rupees we will get 1 x 6Y/7 x Y liter milk.
Hence in 6Y/7 rupees we will get 6/7 liter milk.
We need 1 liter mixture of milk and water for sold on the same price, we need to mix the water.
So water quantity in mixture = 1 - 6/7 = 1/7

Ratio of Milk and water in mixture = quantity of Milk in Mixture/quantity of Water in Mixture
Ratio of Milk and water in mixture = 6/7 / 1/7
Ratio of Milk and water in mixture = 6 x 7 / 7
Ratio of Milk and water in mixture = 6 / 1
Ratio of Milk and water in mixture = 6 : 1

Method 2 to solve the question.
Let the original amount of milk be 1 liter and the cost price is 1 rupees per liter.
Cost price of milk = 1 rupees.
Selling price of Mixture = 1 rupees.
When the milk is mix with x liters of water milk remaining is 1- x.
Let us assume the cost price of milk in mixture is Y and given that the Sold Price is 1.
we should use the Profit formula in algebra,
Y + Y x 50/3 % = 1
Y + Y x 50/3 x 100 = 1
Y + Y x /3 x 2 = 1
7Y/6 = 1
Y = 6/7
Y = 6/7 is the cost price of Mixture for 1 liter.
Since water is free so there is not cost of water in mixture. So price of milk is 6/7 rs in mixture.
Since as per question,
In 1 rupees we will get 1 liter of milk.
hence in 6/7 rupees we will get 1 x 6/7 = 6/7 liter of milk.
Now we have to make 1 liter of mixture with water and milk.
quantity of Water + Quantity of Milk = 1 liter
quantity of Water + 6/7 = 1
quantity of Water = 1 - 6/7 = (7 - 6)/7
quantity of Water = 1/7
Ratio of milk and Water = Quantity of Milk / quantity of Water
Ratio of milk and Water = (6/7) / (1/7)
Ratio of milk and Water = (6/7) x (7/1)
Ratio of milk and Water = 6 x 7/ 7 x 1
Ratio of milk and Water = 6 :1