B. is the best answer, although all our good answers (and I gave all a thumb's up).
It is the water pressure varying with depth (which is a function of gravity and density) which keeps everything in equilibrium.
At a particular elevation, if there were more pressure on one side of a U-tube, the two columns would no longer be in equilibrium. There would be a net force downward on the side of the column under greater pressure and water would flow towards the side of the tube under less pressure.
So long as atmospheric pressure is constant on both sides of the tube, water, at all points in the column, will be under the same pressure when the two columns are level.
But atmospheric pressure is NOT the driving force. The process would work equally well in a vacuum. Imagine mercury (which has a low vapor pressure) in a vacuum. It would reach equilibruim just like water. It is the pressure gradient in each tube which cause the fluid to balance.
Sure, you can disrupt the system to cause the fluid on each side of the u-tube not to balance, but you have to act to do so. If you had different atmospheric pressures on each side, then it would upset the equilibrium such that the water column facing the lower pressure would rise by an amount equal to the pressure difference. I.e., h = pressure difference/(rho *g). The same principle applies if the density of the liquid in the two tubes varies, such as the water is at different temperatures, or one is saline.
But assuming that the fluid is at constant density, and faces the same pressure on each side of the tube, then B is the answer.
Source(s)
I didn't answer the previous question on helium balloons (Kirchwey did a great job). But I found a good U-tube (pun intended) video about a US Airforce captain who jumped out of a helium balloon at 30k, or above 99% of the atmosphere.
http://www.youtube.com/watch?v=jvRG7LzKcDA