The correct option is C air pollution
Lichens are the symbiotic association of an alga (phycobiont) and a fungal member (mycobiont). High levels of sulphur dioxide indicate air pollution. The algal partner is most affected by the sulphur dioxide. Chlorophyll is destroyed and photosynthesis is inhibited.
Hence, lichens will not survive if the level of air pollution increases and thus serve as good indicators of air pollution.