The correct option is A Steel
Steel is used to make the permanent magnet because when steel bar is magnetised the domains change their shape due to the realignment of the dipoles having their axes parallel and in the same direction and this realignment of the dipoles within the domains is permanent. Hence, the steel possess permanent magnetism when magnetised. Where as iron bar also the same thing happens when magnetised but when the cause of the induced magnetism is removed, the mutual repulsive force between the like poles of the parallel dipoles disturbs and disarranges them. Hence, iron bar lost magnetism. Therefore, iron retains the magnetism temporarily.