The correct option is B Reduction in oxygen absorption by the alveoli
Smoking over a period of time, causes the alveolar walls to collapse. The sacs clump together, deforming the structure of the alveolus. The healthy alveolus has numerous inter chamber walls which give it a large surface area for efficient absorption of oxygen. But as it gets damaged by the smoke, the inter chamber alveolar walls collapse and coalesce to form a large single cavity with much lesser surface area. Thus the capacity to absorb oxygen is considerably reduced and this causes difficulty in breathing and shortness of breath.