The correct option is
D First extracellular and then intracellular
The animals of genus Hydra belong to the class Hydrozoa. Digestion in Hydra takes place in two phases- the extracellular phase and the intracellular phase. The preliminary digestion takes place outside the cells of the endodermis, that is, is an extracellular process, and the second phase takes place inside the cells or is an intracellular process.
So, the correct answer is 'First extracellular and then intracellular'.