I dont see anything wrong with your xml file. 

I was able to deploy my backends here is my code

<?xml version="1.0" encoding="UTF-8"?> 
<backends> 
    <backend name="mybackend"> 
        <class>B2</class>         
        <instances>5</instances> 
        <options> 
            <dynamic>true</dynamic> 
            <public>true</public> 
        </options> 
    </backend> 
</backends> 


After you upload you backend do you see your backend listed on the bashboard 
?

If you dont then something wrong with your upload. 

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