Hint: The apex is the growing terminal part of the stem and the roots of the plants. It is the point of attachment from the base portion of the plant and is soft and delicate in nature. It is generally present in the root as root apex and in the shoot as shoot apex.
The lateral meristem is found on the side of the stems and roots. It is involved in increasing the thickness of the plant. The two types of lateral meristems are the vascular cambium and the cork cambium.
Intercalary meristem is found at interns, or stem regions between the positions where the leaves are attached, and the leaf bases, in particular of some monocotyledons, e.g. grasses. Intercalary meristem is a type of meristematic tissue associated with the growth in the middle position. It is made up of meristematic cells that divide in the mitotic fashion at the base of the nodes present in the stem and leaf blades. The development of the tissues at this stage is referred to as intercalary growth.
The axillary bud is popularly called the lateral bud. It is located in the place where the leaf petiole is attached to the stem. These buds are capable of forming shoots and they may also form vegetative shoots in the stems and branches. They are also found in the reproductive shoots or the flowers. The terminal bud is also known as the apical bud. It is the area which is the primary growth point at the tip of the stem that forms the dominant bud. The terminal bud will make the lateral buds dormant (apical predominance). Both buds are created by the apical meristem shoot movement.
The parenchyma tissue in plants, is a tissue which usually is composed of live cells which are thin-walled and they are unspecialized in structure. They are adaptable, with distinction to perform various functions.
Hence, The correct answer is option (C).
Note: The terminal bud develops from the tip of the stem and the axillary buds are produced from the leaf node of the stem. As a consequence, both terminal and axillary buds emerge from the apex. The terminal bud causes the apical bud to become dormant through the process of apical dominance. Therefore, both the buds are formed due to the process of apical meristem especially of the shoot apex.