For each member in the interface, the compiler simply looks for an explicit implementation (if one), then a public implementation (implicit implementation), i.e. a method on the public API that matches the interface signature. In this case, A.FooMethod() looks like a fine match for a public implementation. If B wasn’t happy with that selection, it could either new the method, or use an explicit implementation; the latter would be preferred:
void IFoo.FooMethod() { /* explicit implementation */ }