Concept:
Red rot is one of the most destructive diseases of sugarcane. It is a fungal disease and is commonly known as the “cancer of sugarcane” because it causes severe damage to the crop.
Step 1: Identify the disease.
The disease given in the question is:
\[
\text{Red rot of sugarcane}
\]
Step 2: Identify the causal organism.
Red rot disease of sugarcane is caused by the fungus:
\[
\textit{Colletotrichum falcatum}
\]
Step 3: Eliminate other options.
Phytoplasma causes phytoplasma-related diseases, not red rot.
Fusarium sacchari is associated with other sugarcane diseases but not the standard causal organism of red rot.
Sugarcane mosaic virus causes mosaic disease, not red rot.
Therefore, red rot of sugarcane is caused by:
\[
\textit{Colletotrichum falcatum}
\]
\[
\therefore \text{Correct Answer is (B)}
\]