Final answer:
After passing the M1 exit test with a limited speed motorcycle, one receives an M2 license with an L condition, allowing them to ride LSMs, mopeds, and motorized scooters within certain restrictions.
Step-by-step explanation:
When a student passes the M1 exit test using a limited speed motorcycle (LSM), they receive an M2 license with an L condition. This particular license category is designated for riders of mopeds, motorized scooters, and LSMs where the engine displacement does not exceed 50 cc and the speed does not exceed 70 km/h. Therefore, the correct answer is B. One receives an M2 license with an L condition, which permits them to operate these types of vehicles within the constraints specified by the licensing guidelines.