Foul Tip or Dropped Third Strike?

 
There are no outs, no base runners, and a 2-2 count on the batter (B1). B1 swings at the next pitch and tips the ball. The ball goes sharply and directly backwards and hits the catcher's mask. The catcher then immediately cleanly catches the ball in his catcher's mitt before the ball hits the ground. Is this:
 
A) A dropped 3rd strike... and since 1st base is unoccupied, B1 can attempt to advance there?
B) A caught 3rd strike and B1 is immediately out?
C) A foul ball and B1 remains at the plate with a 2-2 count?
D) None of the above... something else?
 
Call
A foul tip is a pitch that is tipped by the batter and then goes sharply and directly to either of the catcher's hands and then is subsequently legally caught by the catcher. In the play below, the ball first went to the catcher's mask so -- just like if the tip hit the ground or the hit umpire -- it is a foul ball. The batter remains at the plate with a 2-2 count (answer "C").