They notice that there is water in lakes, rivers, and oceans, but there are no clouds in the atmosphere which means that the part of the water cycle which is missing is Condensation and is denoted as option B.
This is defined as the product of the condensation of atmospheric vapor which falls from the cloud under the force of gravity and examples include rain, snow etc.
In situations where there is no clouds in the atmosphere, then it means that there is no condensation which would have resulted in cloud formation because the precipitation aspect of the water cycle occurs.
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