The correct option is B Larger subunit of ribosome
The peptidyl transferase forms peptide bond between the carboxyl group of peptidyl-tRNA present at P site and the free amino group of peptidyl-tRNA present at A site. As we know that ribosomes are the sites for protein synthesis and have two subunits; large and small. The peptidyl transferase activity is the integral factor associated with large ribosome subunit. Thus, the correct option is B.