The correct option is
D More than one option is correct
An axillary bud is also called a lateral bud and is an embryonic shoot known to be present in the axil of a leaf. The bud may remain dormant or form a vegetative shoot such as a stem or a branch. It is also capable of forming a reproductive shoot (flower).
Hence, all the three options mentioned are characteristics of an axillary bud and thus, the answer is 'More than one option is correct'.