The correct option is B O2 gas is produced at the anode
When dil. HNO3 is electrolysed it dissociates into
HNO3→H++NO−3
and H2O→H++OH−
The ions which are in the solution are : H+,OH−,NO−3
So H+ will migrate towards the negative electrode i.e cathode and H2 will be released.
At anode NO−3 has a high discharge potential will not be able to lose electrons and OH− will get oxidized:
4OH−→2H2O+O2+4e−