A: Is that your pure wool pullover in the washing machine? It you know!B: No, I it several times in the machine already. I use the wool cycle and it's fine.

Answer: Option B

In this conversation, the speakers are discussing the condition of a wool pullover that has been put in the washing machine. The context suggests that the pullover has already undergone a change in its size due to being washed. The correct tense to use is the present perfect tense to indicate an action that started in the past and has an effect in the present.

In the dialogue:
Speaker A: "Is that your pure wool pullover in the washing machine? It you know!"
Speaker B: "No, I it several times in the machine already. I use the wool cycle and it's fine."

In Option A, "was shrinking" (past continuous) is not appropriate for describing the ongoing result of washing the pullover; the present perfect tense is more suitable.
In Option C, "will shrink" (future tense) is not appropriate for describing an action that has already occurred in the past.
In Option D, "is going to shrink" (future continuous tense) is not appropriate for describing an action that has already occurred in the past.
In Option E, "is shrinking" (present continuous tense) is not suitable for describing an action that has already been completed.

The correct answer is Option B: has shrunk, which accurately conveys that the pullover has undergone a change in size due to being washed, and this action has an effect in the present.