The correct option is C Phelloderm
When secondary growth occurs in plant stem and roots then the epiderm is replaced by periderm, which protects the stem and roots from water loss and pathogen attack. Such periderm has 3 layers as follows-
1. Cork or phellem, which is non-living and is protective in nature. It is formed on outside by the cork cambium.
2. Cork cambium or phellogen, which is meristematic in nature and produces periderm.
3. Phelloderm is a living parenchymatous tissue, which is formed on the inside by the cork cambium. The phelloderm produces the cork or phellem. Therefore, option C is correct.