The correct option is C Spore formation
Budding is an asexual method of propagation in plants. In budding, there is one parent cell, from which an outward protrusion occurs. This outward protrusion results in formation of buds and in later stages it can form a chain of buds. These buds can detach themselves to form a new individual all together. So, spore formation is not a step which occurs during budding. Spore formation is a mode of asexual reproduction in fungi and ferns.