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Answer should be D. multicast.
B. VXLAN is a overlay technology and VTEP is part of this -> VXLAN tunnel endpoint (VTEP). So thats incorrect.
Multicast used as an underlay technology for remote VTEP discovery
https://www.cisco.com/c/en/us/td/docs/switches/datacenter/pf/configuration/guide/b-pf-configuration/IP-Fabric-Underlay-Options.pdf
https://www.cisco.com/c/en/us/support/docs/ios-nx-os-software/nx-os-software/200262-Configure-VxLAN-Flood-And-Learn-Using-Mu.html#anc6