The right option is; The kinetic energy of moving water is converted to electrical energy.
The energy that water possesses due to its motion (kinetic energy) can be captured and converted to electrical energy (electricity). For example, hydropower plant which is the main source of electricity, store water in a reservoir by using a dam on a river. The water coming from the reservoir moves through a turbine, which spins it, and then initiates a generator to produce electrical energy (electricity).