Answer: C

Solution:

The $k$-th term is $10^{k+1} + 1,$ which $101$ divides iff $10^{k+1} \equiv -1 \pmod{101}.$ Notice $10^2 = 100 \equiv -1 \pmod{101}.$ So $10^m \equiv -1$ exactly when $m \equiv 2 \pmod 4,$ meaning $k + 1 \equiv 2,$ that is $k \equiv 1 \pmod 4.$ Among $k = 1, 2, \ldots, 2018,$ the values $1, 5, \ldots, 2017$ number $505.$ Thus, C is the correct answer.