The correct option is C an ellipse
Let ellipse is x2a2+y2b2=1. Then, the equation of the chord drawn from mid point M(h,k) is
T=S1
⇒hxa2+kyb2−1=h2a2+k2b2−1 …(1)
Now, equation (1) passing through (0,b)
kb=h2a2+k2b2
Hence, the locus of (h,k) is
x2a2+y2b2=ybx2a2+(y−b/2)2b2=14
which is an ellipse