The correct option is C is produced by granulose cells in ovary and inhibits the secretion of FSH
FSH and LH act on specific membrane receptors in granulosa cells and theca cells of the ovary, stimulating follicular growth and hormone synthesis. The peptide hormone inhibin is synthesized and secreted by granulosa cells and specifically inhibits FSH synthesis and secretion by the pituitary. So, the correct option is "is produced by granulosa cells in ovary and inhibits the secretion of FSH".