The correct option is D Fungi can produce antibiotics.
Fungi are harmful in some cases when they spoil jute, wooden and leather articles or when they release mycotoxins in food and make it poisonous. They cause diseases in plants such as root rot, rust etc. Fungi are also useful as many medicines like penicillin and nutritional suppliments can be obtained from it. Some fungi depict symbiotic relationships with ants and wasp. Wasp leave their larvae in fungi ensuring nutrition for them. On the other hand ants let them grow within their anthill to obtain food from them.