The correct option is D Dead tissue separated by periderm on outerside
The outer bark on trees is also called as the rhytidome. It lies external to the last formed periderm. It covers the trunks of trees. It is composed mostly of dead cells and is produced by the formation of multiple layers of suberized periderm, cortical and phloem tissue. It is generally thickest and most distinctive at the trunk or bole the area from the ground to where the main branching starts of the tree. So, rhytidome is the dead tissue separated by periderm on the outside and not dead tissue separated by periderm on the inner side, secondary cortex and bark.
Thus, the correct answer is option B.