The correct answer is: They used to be free-living prokaryotes that functioned as unicellular organisms.
This is based on the endosymbiotic theory, which suggests that mitochondria and chloroplasts originated from free-living prokaryotic organisms that were engulfed by ancestral eukaryotic cells and formed a symbiotic relationship. Over time, these engulfed organisms became integral parts of the eukaryotic cell, retaining some of their own DNA.