The correct option is C Vascular cambium
Xylem and phloem are permanent vascular tissues while pith serves in storage and transport of nutrients. The vascular cambium (lateral meristem) has thin walled highly vacuolated cells of two types, the fusiform initials and the ray initials. The fusiform initials are the elongated cells that give rise to secondary xylem and secondary phloem which in turn increase the girth of plants. Thus, the correct answer is option C.