A finds a watch on the floor of a state transport bus while he was leaving it as a last passenger. He picked it up and put it in his pocket instead of returning it to the state transport authorities. The next day he sold it. A is liable for:

Correct option is C

When A found the watch, it was not theft as there was no dishonest removal. However, by selling it instead of returning it, he committed criminal misappropriation under Section 403 (314 BNS) of the IPC.