Final answer:
An RNA molecule with catalytic activity is called a ribozyme. Option C, rRNA (ribosomal RNA), is shown to have catalytic functions as part of the ribosome. Ribozymes are central to the RNA World hypothesis, indicating RNA's important role in early life forms.
Step-by-step explanation:
An RNA molecule that has catalytic activity is known as a ribozyme. Ribozymes play a crucial role in various biological processes, including the processing of newly transcribed RNA, such as small nuclear RNA (snRNA) and heteronuclear RNA (hnRNA), by acting similarly to enzymes. In the context of the given options, the type of RNA known for its catalytic abilities is rRNA (ribosomal RNA), as indicated in option C.
Ribozymes are considered to be relics from the RNA World, a hypothetical phase in the early development of life where RNA served both as genetic material and a catalytic molecule. The RNA world hypothesis suggests that RNA could catalyze its own replication and, over time, led to the current world where DNA, RNA, and proteins are essential components of life. Today, some RNAs, such as those that are part of ribosomes or spliceosomes, still exhibit catalytic functions, emphasizing the versatility of RNA molecules.