Does the Xbee WiFI S6B have a Watchdog timer?. If not, any suggestion regarding how to implement it externally.

Yes the Firmware that operates the XBee WIFI module has in it several Watch Dog times. But that timer only affects the firmware on the radio and not an external device.

This TI part might work for you:

http://www.ti.com/product/TPS3823/datasheet

Thanks. I selected one similar to this.