CP > SP, so it is loss.

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Best answer

- When there was 10% loss,

SP = CP_{1} - loss

$\therefore$ 300 = CP_{1} - 0.1 CP_{1}

300 = 0.9 CP_{1}

**CP _{1} = 300/0.9 ....(1)**

- When there was 10% profit,

SP = CP_{2 }+ profit

$\therefore$ 300 = CP_{2} + 0.1 CP_{2}

300 = 1.1 CP_{2}

**CP _{2} = 300/1.1 ....(2)**

Total SP of two watches = 300 + 300 = 600

Total CP of two watches = CP_{1} + CP_{2} = 606.06

So we can see there is a loss of Rs.6.06

$\therefore$ loss percent = (6.06/600)*100 = 1 % (approximately)

**B is the answer.**