The correct option is D Hydra
Binary fission is a type of asexual reproduction. Many single-celled organisms reproduce by binary fission. In binary fission a parent cell divides into two daughter cells of approximately equal size and each rapidly grows into an adult. Organisms that reproduce by binary fission include Amoeba, Paramecium.
Yeast reproduce by another method of asexual reproduction called budding. In yeast the division is unequal and small outgrowth called buds are produced. These buds remain attached to the parent cell initially which grows and eventually gets separated and mature into new yeast organisms /cells.
Hydra also reproduces by budding. In Hydra the bud is exogenous and grows externally on the parent body. The bud remains attached to the parent body. It develops into an adult and detaches from the parent body.
Sponges also reproduce by budding. In a sponge the buds are endogenous and develop inside the body. These buds are called gemmules. E.g., Spongilla.