The correct answer to the question is : Refraction.
Step-by-step explanation:
Before going to answer this question, first we have to understand refraction.
Refraction is the optical phenomenon in which light rays are bent at the interface of the two media due to their optical density difference.
When light comes from optical rarer medium to optical denser medium, the rays are bent towards the normal at the point of incidence.
Similarly light rays bend away from the normal when they pass from optical denser medium to optical rarer medium.
As per the questions, the object is present inside the water. The water is optically denser as compared to air. Hence, the light coming from the object is bent at the air-water interface due to refraction of light. That's why the object is appeared to be bent.
Hence, the correct answer is refraction.