The correct answer is: B) Prone to drought
Laterite soils are formed in tropical and subtropical regions with high rainfall and intense weathering. They are rich in iron and aluminum oxides, but low in nutrients such as nitrogen and phosphorus. This makes them less fertile than other types of soil, and they are prone to erosion and drought.
Option A is incorrect because laterite soils are not highly fertile for agriculture. They are low in nutrients and prone to erosion.
Option C is incorrect because laterite soils are not covered with dense forests. They are more likely to be found in open areas with sparse vegetation.
Option D is incorrect because laterite soils are not used for industrial purposes. They are not suitable for most industrial activities.