The correct option is B Both the statements a and b are correct.
Photorespiration is a process which involves loss of fixed carbon as CO2 in plants in the presence of light. It is initiated in chloroplasts. This process does not produce ATP or NADPH and is a wasteful process. Photo-respiratory reactions are operated in chloroplasts, mitochondria, and peroxisomes. Loss of CO2 occurs in mitochondria. Photorespiration occurs usually when there is the high concentration of oxygen. Under such circumstances, RuBisCO, the enzyme that catalyzes the carboxylation of RuBP during the first step of Calvin cycle, functions as an oxygenase. Some O2 does not bind to RuBisCO and hence CO2 fixation is decreased. The RuBP binds with O2 to form one molecule of PGA (3C compound) and phosphoglycolate (2C compound) in the pathway of photorespiration. Rather, it results in the release of CO2 with the utilization of ATP. It leads to a 25 percent loss of the fixed CO2. O2 is first utilized in chloroplasts and then in peroxisomes. It decreases photosynthetic output.