The correct option is (a) Temperature compensation takes place by variation in forward voltage (VF)
To elaborate: In some of the negative feedback circuits, the amplification level of AC signals gets ablated suddenly. Since it becomes difficult for the circuits to tolerate the loss of signals, it is essential to reduce the drift in an operating point by means of compensation and stabilization.
Compensation techniques include diode compensation, bias compensation using thermistor, sensistor & so on. They play a major role in providing maximum bias in addition to the thermal stabilization to the circuits.