Step 1: Understanding Lichens
Lichens are a symbiotic relationship between fungi and algae (or cyanobacteria). The fungi provide a structure and absorb water and minerals from the environment, while the algae (or bacteria) perform photosynthesis to produce food.
Step 2: Analyzing the Options
Option (A) is incorrect because lichens are a symbiotic association between fungi and algae, not fungi and bacteria.
Option (B) is incorrect because the symbiotic relationship in lichens involves algae, not bacteria, for food generation.
Option (C) is correct because lichens are very sensitive to air pollution, as the algae within them can be harmed by pollutants.
Option (D) is correct because lichens are formed by the symbiotic relationship between fungi and algae, where the fungi absorb water and minerals, and the algae generate food via photosynthesis.
Thus, the correct answers are (C) and (D).