The correct answer is C: yes, and it briefly passes through the atmosphere as it cycles between organisms.
Carbon dioxide is produced by organisms during processes like respiration and is used by plants during photosynthesis. It is continuously cycled through the environment, moving between the atmosphere, living organisms, and various carbon sinks like the oceans, soil, and fossil fuels. While some carbon dioxide can be stored in these sinks, it is constantly being utilized and released by living organisms.