As Reprise said, interpreting Yu's words must be done in caution.Wait does this mean Suzuki officially said 110 aren't involved with Shenmue 4? Before that quote he said he hadn't spoken to them about that tweet.
But to me, it's the situation described excelent by Nick. I think this have more to do with the fact that is Air Twister moment than with Shenmue 4 state of development. And having some buzz started with a fantasy game is very important to Suzuki, I dare to say a wish. Let's take a look at his gamography... Almost every title is "reality themed", even when it may border supernatural elements. Space Harrier has been always Yu's Roschard test, screaming for making fantasy games.
So it would be more fitting your B scenario.
Edit: sorry I wrote missing some key posts already explaining it.