Final answer:
The type of localized signaling where a cell's secreted signal molecule affects neighboring cells is known as paracrine signaling. It involves local diffusion of signals and usually induces rapid, short-lived responses. Therefore correct option is B
Step-by-step explanation:
A type of localized signaling in which a cell secretes a signal molecule that affects neighboring cells is best described as paracrine signaling. Paracrine signaling involves signals that act locally between cells that are close together. These signals move by diffusion through the extracellular matrix and usually elicit quick responses that last only a short amount of time. To maintain localized responses, paracrine ligands are typically quickly degraded by enzymes or removed by neighboring cells. This process reestablishes the concentration gradient for the signal molecule.