The correct option is A It forms secondary cortex on its outerside
Cork cambium or phellogen is formed in the extra stelar region during secondary growth in plants.
Cork cambium is usually formed in the cortex region and is a couple of layers thick and meristematic. It forms the cork or phellem towards the outer side and secondary cortex or phelloderm towards the inner side.
The periderm is a collective term used for cork, cork cambium and secondary cortex.
The phellogen at certain regions cuts off closely arranged parenchymatous cells on the outer side. These cells rupture the epidermis forming apertures called lenticels. Lenticels permit the exchange of gases.
Hence, the statement in option a is incorrect.