Formal communication is designed by the administration. It is an official correspondence which happens through the line of authority or chain of leadership.
The answer is "b. formal lateral".
Lateral communication can be seen occurring between people working at a similar level or working under a similar official. Utilitarian supervisors working at a similar level, in various offices, through their correspondence, show a decent case of lateral communication. The fundamental utilization of this measurement of communication is to keep up coordination and audit exercises appointed to different subordinates.