The filtration kit including the funnel, flask and filter paper will be able to filter the muddy water. The water molecules will be able to pass through the holes of the filter paper, but the mud part will not be filtered. Those molecules will not be able to pass through these holes, and hence, only water will be filtered and collected in the flask while the mud will be over the filter paper.
Hence, the correct answer is 'option C - muddy water'.