The correct option is D Vertically downward and horizontally downstream
When the vertical acceleration is acting downward, the foundation will try to move downward, i.e. away from the body of the dam; thus reducing the effective weight and stability of the dam. Thus it is the worst case from design point of view. When the reservoir is full, the force due to horizontal acceleration would produce worst results if it is additive to the hydrostatic water pressure, thus acting towards the downstream. When the reservoir is empty, this force would produce worst result, if considered acting upstream.