Step 1: LED operation
An LED emits photons via radiative recombination across the p–n junction. This requires forward bias so that carriers (electrons/holes) are injected into the junction in sufficient numbers to recombine and emit light.
Step 2: Photodiode operation for maximum sensitivity
A photodiode detects light by generating electron–hole pairs in/near the depletion region. Under reverse bias (photoconductive mode), the depletion width increases and the electric field sweeps the carriers quickly, giving:
- higher quantum efficiency/sensitivity,
- lower junction capacitance \(\Rightarrow\) faster response,
- reduced recombination losses.
Final Answer: LED—forward biased; Photodiode—reverse biased \(\Rightarrow\) (B).