How to tile an internal corner

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How to tile an internal corner

I'm just wondering how to tile round an internal corner in terms of how to butt the tiles up to the wall. As they say, a picture says a thousand words, so should I go for A or B:

And whichever option I go for, am I right in thinking that I'd need to caulk the join between the tiles that meet, rather than grout?

Thanks...

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