The correct option is B sulfur dioxide
Sulfur dioxide gas turns moist blue litmus red but bleaches the colour of litmus. Sulfur dioxide gas dissolves in water to form sulphurous acid.
SO2+H2O→H2SO3
When blue litmus changes its color to red, it indicates acidic solution.
Sulfur dioxide gas acts as a bleaching agent because in presence of water, it is oxidised to sulphuric acid with liberation of nascent hydrogen which reduces colouring matter to colourless.
SO2+2H2O→H2SO4+2[H]
Colouring matter +2[H]⇌ colourless matter