Question of the day : Derivatives

The underlying difference between exchange traded funds and derivatives is:

• A. Exchange traded funds transform the performance of underlying asset
  whereas derivatives after deductions pass through the returns of the
  underlying securities.
• B. Exchange traded funds after deductions pass through the returns of the
  underlying securities whereas derivatives mimic the performance of the
  exchange traded funds.
• C. Exchange traded funds after deductions pass through the returns of the
  underlying securities whereas derivatives transform the performance of
  underlying asset