The correct option is B CO2 combines with PEP
C4 pathway is called so because it is found in C4 plants. It is a cyclic process. It is also known as a Hatch-Slack pathway. In this pathway, CO2 combine with PEP because it is primary CO2 acceptor. PEP (phosphoenolpyruvate) is a three-carbon molecule and it is present in mesophyll cells. The enzyme that catalyzes this CO2 fixation is PEP carboxylase or PEPcase. The mesophyll cells of C4 plants lack the enzyme RuBisCO. The 4-carbon oxaloacetic acid (OAA) is formed in the mesophyll cells which is further converted into the malic acid or aspartic acid and then transported into bundle sheath cells. In the bundle sheath cells, these C4 acids are broken down to release CO2 and a three-carbon molecule.