The correct option is B Functional residual capacity
The volume of air which remains in the lungs after a normal expiration is called Functional Residual Capacity. It is equals to the expiratory reserve volume and residual volume i.e, RC = ERV + RV. At FRC, the opposing elastic recoil forces of the lungs and chest wall are in equilibrium and there is no exertion by the diaphragm or other respiratory muscles.
So, the correct answer is option B.