The suggested answer is B.
Graceful degradation refers to the design concept where a system continues to function in the presence of partial system failures, albeit in a reduced capacity. This implies that when some modules are unavailable, the entire application doesn't go down, but rather continues to operate with limited functionality, maintaining service continuity to some extent. Thus, the statement 'Some modules are unavailable, but the entire application has not been brought down' correctly describes graceful degradation.