The correct option is B Grey matter
The central nervous system is made up of grey matter and white matter. The spinal cord is composed of long tracts of myelinated nerve fibres (known as white matter) arranged around the periphery of a symmetrical butterfly-shaped cellular matrix of grey matter. The grey matter contains cell bodies, unmyelinated motor neuron fibres, efferent fibres and interneurons connecting either the two sides of the cord or the dorsal and ventral ganglia.
So, in case of spinal nerves, the efferent fibres have their cell bodies in the grey matter.