All three explanations are legitimate yet take different approaches, and I could imagine finding all of them on a number of ESL grammar pages. However, my preference is making ESL grammar more accessible to learners. Therefore, I always aim for the most practicable explanation that is easy to understand and easy to use. Hence, to me, explanation B is the most attractive.
My personal explanation of this topic is that both "interested" and "interesting" are used like adjectives, and while "interested" describes how someone feels, "interesting" describes how someone or something is, i.e. feeling vs. characteristic. The same applies to many other adjectives that come with -ed and -ing endings, such as excited/ exciting, bored/ boring, fascinated/ fascinating, motivated/ motivating, etc.