Recall the definition of resistance
where is the length of the wire, is the cross-sectional area of the wire, and is the resistivity of the wire material. Let be the current that runs from the terminal to the through the Nichrome wire. Then by Ohm's Law the following relationship must hold:
This implies that
Therefore, the potential difference across the smaller wire is
Therefore, the potential at the junction is
Therefore, answer (A) is correct.