Step 1: Function of theca interna.
The theca interna is a layer of cells in the ovarian follicle that plays a critical role in hormone production. It synthesizes androgens, which are precursors to estrogen.
Step 2: Hormone production.
The granulosa cells, under the influence of FSH, convert the androgens produced by the theca interna into estrogen through aromatization.
Step 3: Explanation of other options.
Option (A): Incorrect. Progesterone is primarily produced by the corpus luteum, not theca interna.
Option (C): Incorrect. LH (luteinizing hormone) stimulates theca interna but is not secreted by it.
Option (D): Incorrect. FSH (follicle-stimulating hormone) regulates granulosa cells, not theca interna.
\[
\therefore \text{The correct answer is: Estrogen.}
\]