When a Mutual Fund You Own Buys and Sells Securities

When a mutual fund you own buys and sells securities in its portfolio,

A) you are responsible for paying taxes on the net gains and losses incurred.
B) the mutual fund is responsible for paying the taxes before distributing your share of the net gains.
C) the IRS does not levy taxes on mutual funds.
D) you have a choice on whether to pay taxes on the gains during the current year, or to pay the taxes over a five-year perioD.