The correct option is A liberate free chlorine
Bleaching should not be used for acidic water as it reacts with them to liberate Cl2 gas. The bleaching action of chlorine is due to liberation of nascent hydrogen gas.
Cl2+H2O⇌2HCl+[O]
When water is acidic, the above equilibrium shifts in reverse direction and Cl2 gas is liberated.
Hence, the option (B) is the correct answer.