The correct option is
B Polyps produce medusae asexually and medusae produces polyp sexually
Metagenesis is the process of alteration of sexual and asexual reproductive cycle. Polyp is the asexual stage and the medusa the sexual stage. Polyp gives rise to the medusae by budding. The medusae then produce new polyps by sexual reproduction. A medusa produces eggs or sperm, which are usually shed into the water; when an egg is fertilized, it develops into a swimming larva, which eventually settles and grows into a polyp.
So, the correct answer is 'Polyps produce medusae asexually and medusae produces polyp sexually'.