The Lenz law states that the induced emf in a coil due to a changing magnetic flux is such that the magnetic field created by the induced emf opposes the change in a magnetic field.
When the north pole of a magnet is moved towards a coil that is connected to a circuit, the distance between the magnet and the coil will reduce, and magnetic flux associated with the coil is increased.
Due to this change in magnetic flux, an emf will induce in the coil and the direction of the induced emf will be such that it tries to stop the change of magnetic flux.
Therefore, the direction of current will be such that it stops the motion of the magnet and it is only possible when the north pole is formed on the magnet side of the coil so that the coil can repel the magnet.
We know that if the current in the coil is clockwise, the face of the coil towards the observer behaves as the south pole and if the current in the coil is anti-clockwise, the face of the coil towards the observer behaves as the north pole.
So, for the formation of the north pole on the magnet side, the current in the coil will be anti-clockwise when the coil is seen from the magnet side.
Hence, the correct option is (B).