A group of fungi with septate mycelium in which sexual reproduction is either unknown or lacking are classified under
A. Phycomycetes
B. Deuteromycetes
C. Ascomycetes
D. Basidiomycetes

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Hint: The fungi with septate mycelium in which sexual reproduction is either unknown or lacking reproduce with the help of asexual reproduction and produces their spores which are known as sporogenesis. There are more than 25000 species that are classified as asexually reproducing fungi. There are three groups of fungi that show sexual reproduction. Whereas other group of fungi reproduce either by budding or asexual mode of reproduction.

Complete answer:
The group of fungi with septate mycelium in which sexual reproduction is either unknown or lacking in fungi imperfecti or known as deuteromycetes. The fungi which comes under deuteromycetes does not make spores by sexual reproduction. It reproduces asexually or by budding as their sexual form of reproduction is never found. Deuteromycetes are no longer formally accepted as taxon as most of the fungi were classified based on characteristics of fruiting bodies and spores formed during sexual reproduction. Deuteromycetes fungi produce their spores asexually through a process called sporogenesis.

Hence, the correct option is B. Deuteromycetes.

Note:
Deuteromycetes are no longer accepted in taxonomy as they do not adhere to the principles of monophyly. There are several classes of deuteromycetes like class Hyphomycetes, class Coelomycetes and class Agonomycetes. Some fungi which are used in industries are Penicillium griseofulvum, Penicillium roqueforti, Penicillium camemberti, Aspergillus oryzae, Aspergillus niger etc. Other informal names of deuteromycetes are anamorphic fungi or mitosporic fungi but these names are not considered in taxonomy. Phylogenetic classification now commonly uses molecular systematic for asexually reproducing fungi.