Correct answer: unstable
At equilibrium the upward Coulomb force balances mg. If B moves up slightly, separation increases, the Coulomb force (proportional to 1/r²) decreases below mg, so net force is downward... but downward motion is toward A, decreasing r and increasing the Coulomb force above mg, pushing B further up. In each case the displacement is reinforced rather than opposed, so the vertical equilibrium is unstable.