The correct option is A Hydra reproduces by budding, Amoeba reproduces by binary fission.
Budding is a mode of asexual reproduction in which a new organism is developed from an outgrowth or bud developed on the parent's body. Hydra reproduces through budding.
Binary fission is also a mode of asexual reproduction in which the parent cell splits into two daughter cells e.g., Amoeba.
Thus, the correct answer is option A.