The correct option is D both KE and momentum are conserved.
Elastic collisions occur only if there is no net conversion of kinetic energy into other forms. During the elastic collision, kinetic energy is first converted to potential energy associated with a repulsive force between the particles (when the particles move against this force, i.e. the angle between the force and the relative velocity is obtuse), then this potential energy is converted back to kinetic energy (when the particles move with this force, i.e. the angle between the force and the relative velocity is acute).
Also, the average of the momenta before and after the collision is the same.
Hence, in a perfectly elastic collision both KE and momentum are conserved.