The correct option is Mail enabled security group.

A Mail enabled security group combines a security principal with an email address so it can be granted permissions to resources and it can receive messages for its members.

Security group is incorrect because a security group can be used to control access but it does not provide an email address by default and so it cannot be used as a mailing list.

Dynamic distribution group is incorrect because it is a mail only construct with membership calculated at message delivery and it is not a security principal that can be used to assign resource permissions.

Distribution group is incorrect because a distribution group can receive email but it is not a security group and so it cannot be used to grant access to resources.

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