(B) Fusiform initials are elongated cells in the vascular cambium that divide to produce the axial system of the secondary xylem and secondary phloem.

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(B) Fusiform initials are elongated cells in the vascular cambium that divide to produce the axial system of the secondary xylem and secondary phloem. These include tracheary elements (tracheids and vessels),fibres,and axial parenchyma. Therefore,the correct option is $B$.