First of all, the rocket uses a
Launch Tube and a T-Nozzle. This means that when the
weight of the rocket and the water combined is low,
the speed will be high. This explains the maximum at
point C which represents a high
initial velocity.
The area of non-viable flight at the
top and to the right of the view is caused by the
rocket still having water in it when it hits the
ground. This gives a clue as to the nature of area A.
Area A is the result of the rocket
reaching a high speed before it hits the ground and
is caused by the rocket still having enough water on
board so that it just runs out before impact. In this
state, acceleration, assisted by gravity, gives a
maximum velocity around area A thus
a high terminal velocity as it is driven into the
ground.
Area B happens to be
where there is a maximum in the height. Thus, area B
corresponds to maximum velocity reached as a result
of having the longest way to fall.