The correct option is A Water droplets
A rainbow is a natural spectrum appearing in the sky usually after a rain shower. It occurs due to dispersion of sunlight by tiny water droplets, present in the atmosphere. A rainbow is always formed in a direction opposite to that of the Sun to facilitate easy dispersion on sunlight. The water droplets act like small prisms. They refract and disperse the incident sunlight, then reflect it inside the droplet, and finally refract it again when it comes out of the raindrop. Due to the dispersion of light and internal reflection in the droplet, different colors of the rainbow are visible.