I think option A is most likely to happen because I don't think they would want to risk running commercial beyond Holystone as if it is already funded by Nexus, it probably means that it isn't Viable.
I don't think with the "Driver shortage" they claim is going on, they would want to risk keeping it to Whitley Bay or making it every 30 minutes along the 54 route. This just shows the sorry state of affairs with buses in North Tyneside as yet another victim of Budget cuts and I think more cuts will happen shortly