The correct option is B Anaerobic
Biogas is produced due to the anaerobic fermentation of the slurry of animals dung.
Microbial conversion of organic matter to methane has become attractive as a method of waste treatment and resource recovery. This process is anaerobic and is carried out by action of various groups of anaerobic bacteria.
Three basic points about this process are that most of the important bacteria involved in biogas production process are anaerobes and slow growing, a greater degree of metabolic specialization is observed in these anaerobic microorganisms and that most of the free energy present in the substrate is found in the terminal product methane. Since less energy is available for the growth of organism, less microbial biomass is produced and, consequently, disposal of sludge after the digestion may not be a major problem.