The correct option is B It works as a T-flip-flop
From the combinational logic
Assuming D as input, Qn as present state and Qn+1 as the next state, then
R=¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯D⨁Q,S=D⨁Q
Characteristic equation of R - S flip flop
Qn+1=S+¯¯¯¯RQin
So, Qn+1=(D⨁Qn)+¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯(D⨁Qn)Qn
=(D⨁Qn)+(D⨁Qn)Qn
=(D⨁Qn)[1+Qn]
=D⨁Qn
=D¯¯¯¯Qn+¯¯¯¯¯DQn
For, D=0; Qn+1=Qn
D=1; Qn+1=¯¯¯¯Qn
So the circuit functions as a T- flip flop.