Azolla is used as a biofertilizer because it

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(C) $Azolla$ is used as a biofertilizer because it contains a symbiotic association with nitrogen-fixing cyanobacteria, specifically $Anabaena \, azol

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Has association of nitrogen-fixing cyanobacteria

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(C) $Azolla$ is used as a biofertilizer because it contains a symbiotic association with nitrogen-fixing cyanobacteria, specifically $Anabaena \, azollae$, in its leaf cavities.These cyanobacteria are capable of fixing atmospheric nitrogen, which enriches the soil with nitrogenous nutrients, making $Azolla$ highly beneficial for crops like rice.

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