The correct option is B Mesophyll
The thin walled mesophyll cells of C4 have grana in the chloroplast and carry on initial carbon dioxide fixation with the help of PEP carboxylase enzyme. The PEP carboxylase enzyme carboxylates phosphoenol pyruvic acid or PEP and converts it into four carbon atom containing organic acids like oxaloacetic acid and malic acid. These organic acids are transported to bundle sheath cells, where they are subsequently decarboxylated to release carbon dioxide. Thus the bundle sheath cells get high concentration of carbon dioxide and are not exposed to oxygen released from grana during light reaction. This adaptation reduces photorespiratory losses in C4 plants. Thus improving overall efficiency of photosynthesis in these plants.