Correct Option: D

During the formation of a junction diode, holes from p-region diffuse into n-region and electrons from n-region diffuse into p-region. In both cases, when an electron meets a hole, they cancel the effect of each other and as a result, a thin layer at the junction becomes free from any of charge carriers. This is called depletion layer. There is a potential gradient in the depletion layer, negative on the p-side and positive on the n-side. The potential difference thus developed across the junction is called potential barrier.