The correct option is B Lateral meristem
The vascular bundles in dicotyledons are made up of various tissues of which the xylem and the phloem are the conducting tissues. Between these two is present an important layer of cells which are meristematic - the cambium. Since it lies between the vascular bundle it is called as fascicular cambium. These cambial strips are placed laterally with respect to the circumference of the stem.
Thus, the correct answer is option B.