Depends if you're more of a keyboard or gamepad person. If you're expecting to get some good game for your PC in the near futue, you might as well go for Option B. But if you're more of a console person and have a few games right now set in mind, get Option A.
I'm from the UK and so don't really know US hardware prices but I can't believe you could get a really good gaming PC for $700. If you will only be using your PC for work and have no multimeda needs then get the cheap pc and buy the 360. I'm lucky enough to have a reasonable gaming PC and a 360 premium and I have to say the vast majority of my gaming time is taken up on the 360. So in summary go for A :)
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