Option 1: Thallophytes have well differentiated body design. This statement is incorrect. Thallophytes are a group of lower plants that lack differentiated tissues and organs. They have a body design that is not divided into distinct structures like roots, stems, and leaves.

Option 2: Funaria is a fungus. This statement is incorrect. Funaria is not a fungus, but rather a type of bryophyte, specifically a moss. Fungi and bryophytes are two distinct groups of organisms.

Option 3: All Pteridophytes are Phanerogams. This statement is incorrect. Pteridophytes are a group of non-flowering vascular plants that include ferns, horsetails, and clubmosses. Phanerogams, on the other hand, are a broader group that includes both flowering and non-flowering plants. So not all pteridophytes are phanerogams.

Option 4: Vascular system is not found among Bryophytes. This statement is correct. Bryophytes, which include mosses, liverworts, and hornworts, lack a true vascular system. This means they do not have specialized tissues