Two kinds of nitrogen-fixing bacteria are recognized. The first kind, the free-living (non-symbiotic) bacteria, includes the cyanobacteria (or blue-green algae), Anabaena and Nostoc and genera such as Azotobacter, Beijerinckia, and Clostridium. 

Azotobacter and Beijerinckia  are aerobic free living saprophytic nitrogen fixing bacteria, while Clostridium is anaerobic free living saprotrophic nitrogen fixing bacterium.

Nitrogen fixation is referred to as conversion of atmospheric nitrogen into ammonia, whereas the Nitrosomonas is a genus of Gram-negative, chemoautotrophic bacteria. This organism oxidizes ammonia into nitrite as a metabolic process. 

Nitrifying bacteria are chemoautotrophic or chemolithotrophs depending on the genera (Nitrosomonas, Nitrosococcus, Nitrobacter, Nitrococcus) bacteria that grow by consuming inorganic nitrogen compounds. Many species of nitrifying bacteria have complex internal membrane systems that are the location for key enzymes in nitrification: ammonia monooxygenase, which oxidizes ammonia to hydroxylamine, and nitrite oxidoreductase, which oxidizes nitrite to nitrate. Nitrifying bacteria are a narrow species in the environment and are found in the lowest numbers, where considerable amounts of ammonia are present (areas with extensive protein decomposition, and sewage treatment plants). Nitrifying bacteria thrive in lakes and rivers streams with high inputs and outputs of sewage and wastewater and freshwater because of the low ammonia content.

Nitrification is an important process in nitrogen cycle in nature, which is brought about by nitrifying bacteria. In warm moist soils having a temperature of $30-35^0$C and neutral pH, ammonia gets oxidized to nitrite ($NO _2^-$) and then nitrate ($NO _3^-$) by the process of nitrification. 

The common Nitrogen fixer in the paddy field is Azospirillum. This is a soil and root bacteria. It is a nitrogen-fixing bacteria when added to the soil it multiplies and supplies 30-40Kg nitrogen per hectare per season. It also produces Indole acetic acid which helps in growth.

Some bacteria and cyanobacteria (blue-green algae) are able to fix nitrogen into usable forms of salts of nitrogen for plants.

Rhizobium and Cynobacteria are involved in nitrogen fixation. There are many more bacteria like Nitrobacter, Nitrosomanas etc involve in maintaining the balance of nitrogen gas in the atmosphere.

Rhizobium is a bacterium found in the root nodules of leguminous plants. It induces the formation of special structures called nodules inside which it fixes atmospheric nitrogen. It does this with the help of nitrogenase enzyme that converts of nitrogen to ammonium that is an important factor required for plant growth. In turn, the bacterium receives shelter from the plant. Thus the correct answer is option A.

The second step (oxidation of nitrite into nitrate) is done mainly by bacteria of the genus Nitrosomonas and Nitrobacter.

Oxidation of Ammonia to nitrite is performed by two groups of bacteria. Nitrosomonas and Nitrosocossus are examples of bacterias which perform the oxidation of ammonia to nitrite.

Anaerobic bacteria do not need oxygen. This is because they don't  use oxygen in any of their processes. Thus bacteria are poisoned by oxygen.

Nitrification is a process of conversion of ammonium salts to nitrites and nitrites to nitrates. The bacteria that carry out this process are called as nitrifying bacteria. Nitrosomonas, Nitrosospira, Nitrosococcus convert ammonia into nitrites. Nitrobacter, Nitrospina, Nitrococcus convert nitrites into nitrates.

Atmospheric carbon dioxide is used by plants to produced food. Due to industrialization, large amount of carbon dioxide is released in the atmosphere. This CO$ _2$ provides nutrient source to certain plants. However, excess amount of CO$ _2$ inhibits growth in plants. It inhibits nitrate assimilation in certain plants. It basically inhibits absorption of nitrogen.

Nitrification is a process of conversion of ammonium ions to nitrites and nitrites to nitrates. The bacteria that carry out this process are called as nitrifying bacteria. Nitrosomonas, Nitrosospira, Nitrosococcus convert ammonia into nitrites. Nitrobacter, Nitrospina, Nitrococcus convert nitrites into nitrates.

Atmospheric nitrogen is not available to plants. There are certain nitrogen fixing bacteria which converts atmospheric nitrogen into ammonium compounds and make it available to the plants. Examples include Azotobacter, Frankia, Rhizobium, Azospirillum. Out of these, Azospirillum is widely used as nitrogen fixer organism in paddy fields. It is used as biofertilizer in rice fields. It promotes the plant growth.

There are two steps in nitrification process by which ammonia is converted into nitrite and nitrite into nitrate. The bacteria that convert ammonia to nitrites include Nitrosomonas, Nitrosospira and the bacteria that convert nitrites to nitrates include Nitrobacter, Nitrospina. 

The organisms involved in nitrogen fixation are termed as nitrogen-fixing organisms. They convert free nitrogen (gaseous form dinitrogen, N2) into forms such as nitrates and nitrites that can be utilized by plants. These organisms could either be free-living or found in symbiotic, mutualistic, or commensalistic relationships with other plants etc. Rhizobium is found in a symbiotic relationship with plant roots. 

Nitrogen-fixing microorganisms are recognized: free-living (non-symbiotic) bacteria, including the cyanobacteria. Anabaena and Nostoc and genera such as Azotobacter, Beijerinckia, and Clostridium and mutualistic bacteria such as Rhizobium, associated with leguminous plants.

First step, ammonium ions are oxidised to nitrites. Nitrosomonas  are the  most important agents of oxidation of ammonia to nitrite in soil. Certain other bacteria are Nitrosococcus , Nitrosolobus ,etc.

Nitrogen-fixing bacteria are capable of fixing atmospheric nitrogen to inorganic substances usable by plants. Example from the given list are Azetobactor, Azospirillum, Rhizobium, Nitrobactor and Nostoc.

Azotobacter is a free-living nitrogen-fixing bacterium, which is used as a biofertilizer in the cultivation of most crops. Azotobacter respires aerobically, receiving energy from redox reactions, using organic compounds as electron donors. Azotobacter can use a variety of carbohydrates, alcohols, and salts of organic acids as sources of carbon. 

Frankia is a bacterium which grows in a symbiotic association with the roots of non-leguminous plants.  It can fix atmospheric nitrogen. It cannot fix nitrogen in free-living state.

Nitrification is a process of conversion of ammonium ions to nitrites and nitrites to nitrates. It is a two-step process. The bacteria that carry out this process are called as nitrifying bacteria. Nitrosomonas, Nitrosospira, Nitrosococcus convert ammonia into nitrites. Nitrobacter, Nitrospina, Nitrococcus convert nitrites into nitrates.

Frankia, Anabaena and Rhizobium are nitrogen-fixing bacteria that absorbs nitrogen from the soil. Glomus is a myccorhizal fungi. The fungal symbiont in these associations absorbs phosphorus from soil and passes it to the plant.
Thus, the correct answer is option (C).