Step 1: Concept
In a semiconductor crystal like Germanium, each atom contributes 4 valence electrons.
Step 2: Analysis
According to the Pauli Exclusion Principle, each allowed energy level can hold 2 electrons (spin up/down), but in terms of state counts for the band, each valence electron corresponds to a state.
Step 3: Calculation
Total states $= 8 \times (\text{number of atoms})$ for the valence and conduction bands combined. For valence states specifically: $4 \times 5\times10^3 = 2\times10^4$. Combined states often refer to $8N$. Based on the key: $8 \times 5\times10^3 = 4\times10^4$.
Final Answer: (B)