The correct option is B CO2 combines with PEP
In C4 plants, CO2 combines with PEP (phosphoenolpyruvate) in the presence of the enzyme PEP carboxylase to form OAA (oxaloacetate). This is the second step in the C4 pathway.
The fixation of CO2 by the enzyme RuBisCO into PGA (3-phosphoglycerate) happens in the first step of the C3 pathway.
The fixation of CO2 into RuBP is observed in the CAM pathway.