With a jet from a garden hose, the air pressure at the free surface of the jet is constant at 1 atmosphere (gauge). This pressure is present throughout the jet cross section. So the pressure throughout any straight section of a jet (more then a few diameters away from the hose exit) is 0 gauge. In your problem, there is a straight section of jet coming toward the blade, and straight sections at A and B leaving the blade. The gauge pressure at these locations is 0. However, in the region where the jet is changing direction in contact with the blade (non-straight section), the fluid pressure varies rapidly from a high value at the blade surface to 0 at the free surface. This pressure variation is what enables the jet to change direction. However, the details of this flow and pressure variation in the region of curved flow are circumvented when you do the overall momentum balance. This enables you to determine the net force of the blade on the jet without ever knowing the details of the flow in the curved region.
Chet