The correct option is
A Electromagnetic induction
Magnetic effect of electric current:
Due to this effect, magnetic field is induced near a current carrying wire. Electromagnets are designed on this principle.
Electromagnetic Induction:
Due to this effect, an emf is induced in a coil when magnetic field lines passing through the coil changes. This is the principle used in a generator or a dynamo.
Chemical effects of electric current:
Due to this effect, chemical composition of compounds through which the electric current passes changes. Electrolysis is based on this phenomenon.
Heating effect of electric current:
Due to this effect, resistor heats up when electric current passes through it. This phenomenon is used in electrical fuses.