Step 1: Understand damping off.
Damping off is a seedling disease characterized by pre- or post-emergence rot at the collar/root zone.
Step 2: Causal organisms.
It is primarily caused by fungal pathogens like \textit{Pythium}, \textit{Rhizoctonia}, and \textit{Fusarium}. Bacteria/viruses or fertilizers are not the causal agents.
Step 3: Conclusion.
Hence, the correct cause is Fungus.