Final answer:
Sponges can reproduce asexually through fragmentation, which is when the organism breaks into parts that each grow into new individuals. Therefore, the most appropriate correct option is C.
Step-by-step explanation:
Sponges can reproduce through various methods, both sexually and asexually. The process described in the student's question, where sponges break into fragments that each grow into a new individual, is known as fragmentation. This asexual reproduction method is seen in several organisms, including sponges, some cnidarians, and other invertebrates like sea stars. Fragmentation involves the organism breaking into parts with each part capable of regenerating into a complete individual. This is different from other asexual methods like binary fission, which is common in single-celled organisms; budding, where a new organism forms from an outgrowth of the parent; and spore formation, where specialized cells can develop into a new individual under favorable conditions.