The correct answer is pay out.
A. pay out
The correct answer is (A) To pay out (money); to expend, to defray (expenses); to distribute or scatter; to give away.
Disburse comes from Old French disborser, desbourser, disbourser, from dis + bourse (out of the purse).
Examples of use:
- The paymaster disbursed the weekly pay envelopes.
- The machine disburses one cup at a time.