Step 1: Understanding the Concept
A light emitting diode (LED) is a p-n junction diode that is forward biased.
Step 2: Working
In forward bias, electrons from the n-side and holes from the p-side cross the junction.
Near the junction they recombine.
Step 3: Light Emission
When an electron falls from the conduction band to the valence band, the released energy is emitted as a photon of visible light.
So the correct statement is option (B).
Final Answer:
An LED emits light when electrons and holes recombine at the junction.
\[ \boxed{\text{(B) }\text{holes and electrons recombine}} \]