Final answer:
The correct sequence in the functional model of an information system is 'Input, Processing, Output, Users'. This represents the linear flow of data through the system, even though actual design processes may be iterative.
Step-by-step explanation:
The sequence of components in the functional model of an information system is B. Input, Processing, Output, Users. This sequence illustrates the flow of information within a system: starting with input (the raw data), which is then processed to add value, resulting in output (the processed information), and ending with the users who interact with the system. The functional model does not typically include the iterative nature of design, often represented by a spiral design process, where inputs and processes are continuously refined through prototyping and evaluation. Instead, it provides a linear overview of how data is transformed into useful information within an information system.