Step 1: Understanding the energy conservation principle.
The total mechanical energy at the start is purely potential energy, \( mgh \). When the block moves downwards, the energy is split into rotational kinetic energy of the wheel and the translational kinetic energy of the block. The total energy is conserved.
Step 2: Setting up the equation.
The rotational kinetic energy of the wheel is \( \frac{1}{2}I\omega^2 \), and the translational kinetic energy of the block is \( \frac{1}{2}mv^2 \). The work done by gravity is \( mgh \). Using the relationship between linear and angular velocity \( v = r\omega \), we get:
\[
mgh = \frac{1}{2}I\omega^2 + \frac{1}{2}mr^2\omega^2
\]
Solving for \( \omega \), we get:
\[
\omega = \left( \frac{2mgh}{I + mr^2} \right)^{\frac{1}{2}}
\]
Step 3: Conclusion.
Thus, the angular velocity of the wheel is \( \left( \frac{2mgh}{I + mr^2} \right)^{\frac{1}{2}} \), corresponding to option (B).