I would suggest scenario "A" with the following details:
- use twisted wire. Could use Cat 5 and ground all the other wires at the arduino.
- Add an opto isolator at the Arduino end.
- heavily filter the input at the board.
- use a lower resistance for R1, like 500 ohms.
- put the switch to switch to ground not high
The opto may not be too useful if you must power the switch from the same Vin.