(A) is the right answer.
The pineal gland is located on the dorsal side of forebrain. Pineal secretes a hormone called melatonin. Melatonin plays a very important role in the regulation of a 24-hour (diurnal) rhythm of our body. For example, it helps in maintaining the normal rhythms of sleep-wake cycle, body temperature. In addition, melatonin also influences metabolism, pigmentation, the menstrual cycle as well as our defense capability.