Correct option is (d) Both refraction and total internal reflection of light
Mirage is an illusion that produces the fake presence of the layer of water in a desert or on the road at short distances caused by the atmospheric refraction and the total internal reflection.
On a hot day, the light coming through the low-temperature layer(denser medium) from the sky enters the high-temperature layer(rarer medium) and gets refracted. The light also suffers the total internal reflection through the high-temperature layer.
Thus, Mirage Is an example of atmospheric refraction and the total internal reflection.