Final answer:
Fatty acid oxidation, also known as beta-oxidation, occurs in the cytoplasm. The correct option is A.
Step-by-step explanation:
The breakdown of fatty acids, called fatty acid oxidation or beta (B)-oxidation, begins in the cytoplasm, where fatty acids are converted into fatty acyl CoA molecules. This fatty acyl CoA combines with carnitine to create a fatty acyl carnitine molecule, which helps to transport the fatty acid across the mitochondrial membrane.
Once inside the mitochondrial matrix, the fatty acyl carnitine molecule is converted back into fatty acyl CoA and then into acetyl CoA. The newly formed acetyl CoA enters the Krebs cycle and is used to produce ATP in the same way as acetyl CoA derived from pyruvate. Hence, A is the correct option.