The correct option is C The bus is moving in forward direction.
When a stationary object is seen from a moving object then the stationary object appears to be moving in the opposite direction to that of the moving object.
Trees are stationary objects. When we see the trees from a moving bus then the trees will appear to be moving in the opposite direction of the motion of the bus.
So, when we observe that trees are going behind that means the bus is moving forward. Also, if we observe trees to be moving forward, that means the bus is going in the backward direction.
When a break is applied and the bus comes to rest with respect to the ground, the trees will appear to be at rest for the person sitting on the bus.
The movement of other passengers in the bus will not bring any difference in observation of the motion of trees.
Therefore, the correct answer to this question is "The bus is moving in forward direction."