Step 1: Understanding the Concept
A counter current system has two parallel tubes with fluid flowing in opposite directions.
Step 2: Apply to the nephron
The limbs of the loop of Henle carry filtrate in opposite directions, and the two limbs of the vasa recta carry blood in opposite directions. The two run side by side in the medulla.
Step 3: Result
This builds up and keeps an osmotic gradient in the medulla, which lets the collecting duct concentrate urine.
Final Answer:
The system acts between the vasa recta and the loop of Henle.
\[ \boxed{\text{(B) }\text{Vasa recta and Loop of Henle}} \]