The correct option is
A Each terminal bronchiole gives rise to a network of bronchi.
Bronchi to bronchiole
The bronchi are subdivided into small bronchioles which enter in the lungs and terminate into the small bag-like structure alveoli.
Thus, the first statement is incorrect.
Alveoli
The alveoli are sac-like structues that are highly vascularized.
Blood vessels around the alveoli help in gaseous exchange between the alveoli and the blood.
Covering of lungs
The two membranes that cover the lungs are the outer parietal pleura and inner visceral pleura.
There is a cavity in between them called the pleural cavity, which is filled with pleural fluid.
Function of pleural fluid
The function of pleural fluid is to reduce the friction on the surface of the lungs.
This helps the two membranes to slide over each other without friction during the breathing process.
Final answer
a. Each terminal bronchiole gives rise to a network of bronchi