The correct option is D At the tip of gametophore
Sex organs in Funaria develop at the tip of gametophore since the plant itself constitutes the gametophytic phase. After fertilization develops the capsule from which protonema develops from the spores that dehisces from the capsule. The capsule constitutes the sporophytic phase. The plant shows an alternation of generation, between the sporophytic and gametophytic phase.