The dissolution of calcium oxide (CaO) in water is an exothermic process, meaning that it releases heat. The reaction produces calcium hydroxide (Ca(OH)2) and is highly exothermic, making it feel hot to the touch.
When calcium oxide dissolves in water it does not just physically disperse, it reacts chemically to form calcium hydroxide. The heat change of that reaction decides the answer, so let's write the reaction and check each option against it.
Because the reaction gives out heat rather than taking it in, the dissolution of CaO in water is exothermic.
So the correct answer is Exothermic.