Step 1: Compare optical sources.
Laser diodes produce
\[
\begin{aligned}
&\bullet\ \text{High optical power},
&\bullet\ \text{Narrow spectral width},
&\bullet\ \text{High modulation speed}.
\end{aligned}
\]
These characteristics make them suitable for long-distance fiber communication.
Step 2: Choose the correct option.
Hence,
\[
\boxed{\text{Laser diode}}
\]
is preferred for long-distance, high-speed optical communication.
Therefore,
\[
\boxed{(B)}
\]
is the correct answer.