Step 1: Concept
A functional unit is the smallest part of an organ that can perform all the functions of that organ.
Step 2: Meaning
The kidney is responsible for filtering blood, reabsorbing nutrients, and excreting waste as urine.
Step 3: Analysis
The cortex is the outer layer of the kidney, and the pelvis is the funnel-like dilated part of the ureter. Pyramids are structural sections of the medulla. The nephron is the microscopic structure that actually performs the filtration and urine formation.
Step 4: Conclusion
Since each kidney contains about one million nephrons that independently process blood, the nephron is the true functional unit.
Final Answer: (A)