Concept:
A gully passes through different stages from its beginning to stabilization.
Step 1: Formation stage.
The first stage is formation, where the gully starts developing due to concentrated runoff.
\[
\text{First step}=C
\]
Step 2: Development stage.
After formation, the gully deepens and widens.
\[
\text{Second step}=A
\]
Step 3: Healing stage.
Later, vegetation and deposition may start healing the gully.
\[
\text{Third step}=B
\]
Step 4: Stabilization stage.
Finally, the gully becomes stabilized.
\[
\text{Fourth step}=D
\]
Thus, the correct sequence is:
\[
C,A,B,D
\]
\[
\therefore \text{Correct Answer is (B)}
\]