In the addition of two signed numbers represented in 2's complement form, an arithmetic overflow condition occurs if:

In 2's complement arithmetic, overflow occurs if and only if two numbers of the same sign are added together and the result has the opposite sign (e.g., adding two positive numbers yields a negative result, or adding two negative numbers yields a positive result). Adding two operands of opposite signs can never cause an overflow.

If boolean conditions $A$ and $B$ represent the sign conditions of the operands aligning with an overflow scenario (i.e., both operands are positive producing a negative result, or both operands are negative producing a positive result), overflow requires the condition $A \cdot B = 1$ (both required overflow conditions are simultaneously satisfied). Equivalently, in terms of carries, overflow $V = C_{in} \oplus C_{out} = 1$.

Option Analysis: