Option 1 states that washing of peeled vegetables removes vitamin A. Vitamin A is a fat-soluble vitamin found in high amounts in certain vegetables. However, washing peeled vegetables does not affect the vitamin A content. Therefore, option 1 is incorrect.

Option 2 states that washing of peeled vegetables removes vitamin C. Vitamin C is required for the growth, development, and repair of body tissues. It is a water-soluble vitamin and can be easily lost during washing or cooking. Therefore, option 2 is correct.

Option 3 states that washing of peeled vegetables removes vitamin D. Vitamin D is not naturally found in vegetables but can be obtained from sunlight exposure or certain food sources. Therefore, option 3 is incorrect.

Option 4 states that washing of peeled vegetables removes vitamin E. Vitamin E is a fat-soluble vitamin that acts as an antioxidant in the body. While vitamin E can be lost to some extent during washing, the majority of the vitamin E content remains intact. Therefore, option 4 is incorrect.

In summary, option 2 is the correct answer as washing of peeled vegetables can lead to the loss of vitamin C.