The correct option is D it has lost the ability to divide
Meristematic tissues are made up of cells that are continuously undergoing mitotic divisions to give rise to new cells. It helps in the growth of the plant. For example, apical meristem which is found in the shoot and root apex.
The cells forming the meristematic tissue subsequently undergo differentiation to form cells that are capable of performing a specific function. At this point, they lose their ability to divide and are called permanent tissues. For example, parenchyma, collenchyma and sclerenchyma are permanent tissues.
Since only meristematic cells divide, they are responsible for giving rise to more tissues and elongation of the stem.