Where a Single Homeowner Dies in 2014 and Bequests Their

Where a single homeowner dies in 2014 and bequests their family home which was originally purchased in 2001 to a beneficiary:

A) the home will be subject to a potential capital gains tax liability if sold by the beneficiary within 1 year following the death of the homeowner using the original purchase price as the cost base.
B) the home will be exempted from a potential capital gains tax liability if sold by the beneficiary within 2 years following the death of the homeowner.
C) the home will be valued at its market value at the date of death of the homeowner and subject to sale on any subsequent disposal by the beneficiary.
D) none of the above.