The correct option is C Nitrogen fixing bacteria
The chemolithotrophic bacteria that reduce the nitrogenous compounds (nitrites and nitrates) into atmospheric nitrogen are termed as denitrifying bacteria. This makes option A incorrect. Option D is incorrect as chemolithotrophic bacteria that reduce the organic nitrogen, present in organic detritus and nitrogenous animal waste, into ammonia are termed as ammonifying bacteria. Option B is incorrect as putrefying bacteria carry out anaerobic decomposition of organic waste. The free living or symbiotic bacteria that convert atmospheric inert nitrogen into biologically active nitrogenous compounds are termed as nitrogen fixing bacteria. This makes option C correct.