The correct option is
C diffusion in forward bias, drift in reverses bias
In forward bias we apply voltage in a direction opposite to that of the barrier potential. Now, we know that the p-side of the diode is connected to the positive terminal and the n-side of the diode is connected to the negative terminal of the battery.
So, the electrons in the n-side and the holes in the p-side get pushed towards the junction. This results in increased diffusion of electrons from n-side to p-side region and the increased diffusion of holes from p-side to n-side region. Hence, dominant mechanism in forward bias is due to diffusion.
In reverse bias, the n-side of the diode is connected to the positive terminal and the p-side is connected to the negative terminal.
So, the electrons in the n-side and the holes in the p-side get pushed away from the junction. This results in zero diffusion current. Hence, dominant mechanism in reverse bias is due to drift.
So, the correct answer is option 3.