Here, we are seeing light pass through a very dense medium. That medium is the air, then it moves to become the water. When this aforementioned light passes from the less dense area, to the more dense area, the light is usually refracted. Refraction is otherwise known as being bent, as well. Therefore, it's your last selection.
That's why when you look at the image, the light doesn't seem straight anymore. It's slightly tilted, being bent a tad. Though, it's still travelling downwards. However, the light won't travel to far down in the water.
D) It is being refracted.
For future reference, here's my dense properties here.
Water: Higher Density
Air: Lower Density
That's essentially why the refraction is occurring here. Also, if you aren't familiar with what a medium is, I suggest you overlook it. It can be rather useful. A medium is a substance that carries a wave through it. Some waves may require a medium to even operate/occur.
For instance, mechanical waves require a medium.
