Concept:When listing multiple subjects, the verb must agree with the plural subject, not just the nearest pronoun.
Explanation:The subject "You, he and I" is plural. Therefore, the verb should be "are," not "am."
The correct sentence is: "You, he and I are good friends."
Option B uses "am," which is only used with the singular pronoun "I."
Thus, option B is the incorrect sentence.
Answer:B. You, he and I am good friends.