Final answer:
Phosphate-rich nodules typically form in areas with upwelling nutrient-rich waters and significant biological activity, which are conditions often found in intermediate to shallow depth water, also known as the continental shelves or upwelling zones.
Step-by-step explanation:
Phosphate-rich nodules, also known as phosphorite nodules, often form in marine environments where conditions favor the precipitation of phosphates from seawater.
These conditions are typically found in areas with a strong upwelling of nutrient-rich waters, which promotes biological productivity and the accumulation of organic material. On the ocean floor, the decomposition of organic matter can release phosphate which combines with minerals to form nodules. Among the options provided, the location that best fits the formation of these phosphate-rich nodules due to upwelling and biological activity is intermediate to shallow depth water (E), usually on the continental shelves or in upwelling zones rather than the abyssal plains (A), estuaries (B), hydrothermal vent areas (C), or mid-ocean ridges (D), which either have different environmental conditions or are too deep to support the biological activity needed for nodule formation.