It is called exothermic reaction because it releases heat and light and it is called combustion reaction because it is reacting and is being oxidised by O2 to MgO.
It can also be called as oxidation reaction since Mg is oxidised to MgO.
<h2>Answer : Option B) Hydrogen</h2><h3>Explanation :</h3>
All fossil fuels contains hydrocarbons in it. Amongst the given options hydrogen is the correct answer. Except that it contains carbon in it. Hydrocarbons are those class of compounds which contains hydrogen and carbon as element in it.
They are considered to be good fuels because they naturally bring out complete combustion as they contain hydrogen and carbon in its compound form.