Your answer is D. Because the Earth rotating on it's axis causes Day and Night
They survive without water by entering a special mode, otherwise called as shriveling. They can lose even 95% of water in their body and still live, even though they would look like dead plants, they would actually be alive. In the absence of water, tardigrades use a sugar called trehalose, which becomes their source of life until they find some water.
Answer: Anywhere near water (rivers, downstreams, oceans, etc.)