The correct option is
C In liver
Bile is produced in the liver by hepatocytes. Bile contains phospholipids and bile salts, emulsifying agents that are necessary for fat absorption and digestion. Importantly, the bile is also a route of excretion of cholesterol and bile pigments. Bile pigments are metabolic breakdown products of hemoglobin and cytochromes that give bile its yellow-green color. Bile pigments are further metabolized by bacteria in the colon, causing feces to have a characteristic brown color. Additionally, bile contains water and bicarbonate ions that are secreted by duct cells that line the bile ducts within the liverSo, the correct answer is 'In liver'