The correct option is C Azolla
Ferns belong to a group of vascular plants which reproduce by spores. They don’t produce seeds or have flowers. Azolla is an example of a fern which is found growing along side rice plants because it doesn’t interfere in their growth. Along with its nitrogen fixing partner, Anabaena (a blue green algae which is found in the leaf cavities of Azolla), the Azolla-Anabaena association has been used as green manure to fertilise crop fields for a better yield. The association helps fix nitrogen in the rice plants and helps in increased yield of the crop. Hence option c is correct.
Pteridium, Marsilea, Salvinia are ferns, but not used as biofertilisers. Hence, options a, b and d are incorrect.