Here's what I'm thinking about option B.

To generate $225 per month (or $2700 per year) at the safe withdrawal rate of 4% you would need a lump sum of $67,500. So, if you've got a balance of $13,000 today and 37 years to grow it to $67,500, what rate of return (compounded annually) would get you there?

I went to Bankrate.com (simple savings calculator) and put in $13,000 as a starting balance and 37 years as the time horizon. Then I played with the interest rate until I got $67,500 as a final balance. You would need just a smidge more that 4.55% to go from $13,000 to $67,500 in 37 years.

So the question is - can you do better than 4.55% over 37 years? If you can, then don't choose option B. If you can't, then you're better off going with option B.