The correct option is C Hydra
Budding is a form of asexual reproduction in which a new organism develops from an outgrowth or bud due to cell division at one particular site. Yeast splits via budding resulting in a 'mother' and a smaller 'daughter' cell. Hydra also undergoes budding. In Hydra, a bud develops as an outgrowth due to repeated cell division at one specific site.
The correct answer is option C.