D.
Well it's not fair to compare the two relationships in the first place and it's really not fair to try to control which one is "better". Your parents will have their own type of relationship with their grandson and so will your in-laws. She sounds unreasonable about it. If I were you I would try to protect your parents time and ability to develop their relationship with their grandchild. It's not their fault that your wife is jealous. Perhaps you could have your parents visit with him without your wife present. Don't forget that turn around is fair play. You could insist that your parents have equal time and that she not interfere. You have no idea how long of a time your parents will be around to enjoy their grandson. Don't waste that precious time with silliness.
Unfortunately this sounds like just the beginning of conflicts on differences in parenting styles.