The correct option is
D Spores are produced in the seta of the sporophyte
In bryophytes the antherozoid fuses with the egg cell to form the zygote, which then grows into the diploid sporophyte. This sporophyte is dependent on the gametophyte for it existence.
The sporophyte is differentiated into foot, seta and capsule. Spores are produced in the capsule and released into the evironment. When a spore germinates, it forms the haploid gametophyte. So the life cycle of bryophytes can be divided into haploid and diploid phases.
This is known as alternation of generations. In bryophytes, both these phases form prominent structures, and both are multicellular. When both the haploid and the diploid phases are prominent, the life cycle is said to be haplo-diplontic.
Although both stages are prominent, for bryophytes, the haploid gametophyte is the more dominant phase. It is independent and photosynthetic. Whereas, the diploid sporophyte is short-lived and is non-photosynthetic, so it is dependent on the gametophyte for nutrition.