The correct option is C All elasmobranch and teleost fishes
The lateral line is a system of sense organs found in aquatic vertebrates, mainly fish, used to detect movement and vibration in the surrounding water. The sensory ability to achieved via modified epithelial cells, known as hair cells, which respond to displacement caused by motion and transduce these signals into electrical impulses via excitatory synapses.
This type of system is best developed in elasmobranch and teleost fishes.
Thus, the correct answer is option C.