yours is the correct answer because if we see the mechanism:-
i) Ph-OCH3+HI(H(+) source)----->Ph-OH(+)-CH3
now there are two possibilities either Ph-OH is removed and CH3(+) cation is formed or
CH3-OH is removed and Ph(+) cation is formed.
But we know phenyl carbocation is not formed anywhere therefore first possibility takes place and that CH3(+) reacts with I(-) and forms CH3-I
and more over O has partial double bond character(due to resonance with benzene ring) and is difficult to cleave.