The correct option is A When density of the object is less than that of the liquid.
When an object is immersed in a liquid, the liquid exerts a force upwards on the object called 'Upthrust'. At the same time, the weight of the object pulls it downward.
When an object floats in a liquid, then the upthrust is equal to its weight.
Since the body is floating, the volume of the liquid displaced is smaller than the volume of the object.
Also, an object floats in a liquid only when the density of the obejct is smaller than the density of the liquid.