The correct answer to the question is : C) The horizontal momentum and the vertical momentum are both conserved.
EXPLANATION :
Before coming into any conclusion, first we have to understand the law of conservation of momentum.
As per the law of conservation of momentum, the total linear as well as angular momentum of an isolated system is always conserved . The law of conservation of energy is a universal fact.
Hence, during any type of collision, the total momentum is always conserved.
Hence, the total horizontal momentum as well as total vertical momentum are always conserved during both elastic as well as inelastic collision.