B. Podemos is the answer. There you go!
The correct answer is the second choice because leaving it as the unconjugated verb would not be correct. Also, note that in the nosotoros and vosotros conjugations of poder, there is not stem change. And since this sentence is talking about "Miguel y yo", that means that the verb will have to be conjugated in the "nosotros" form. Your answer should be: podemos