The correct option is B PS-II and is located on the inner side of thylakoid membrane
Water splitting complex is associated with PS-II and is located on the inner side of the thylakoid membrane (facing the lumen of thylakoids). It helps in splitting the water. The splitting of water (photolysis of water) results in the release of protons, electrons and oxygen. The electrons are utilised to fill the void created in PS-II due to loss of electrons. The protons accumulate inside the thylakoid lumen and generate a proton gradient and the breakdown of this gradient generates ATP. Oxygen formed due to the splitting of water diffuses out through stomata.