**Core Concept**
Peroxisomes are organelles found in the cells of most organisms, including humans, and play a crucial role in the metabolism of fatty acids and amino acids. They are also involved in the detoxification of harmful substances, including hydrogen peroxide, by breaking it down into water and oxygen.

**Why the Correct Answer is Right**
Peroxisomes contain the enzyme catalase, which catalyzes the decomposition of hydrogen peroxide into water and oxygen. This process helps to protect the cell from oxidative damage caused by free radicals. Additionally, peroxisomes are involved in the beta-oxidation of fatty acids, which generates hydrogen peroxide as a byproduct. Therefore, peroxisomes are responsible for both generating and degrading hydrogen peroxide.

**Why Each Wrong Option is Incorrect**
**Option A:** Generating hydrogen peroxide is a byproduct of beta-oxidation in peroxisomes, but it is not the primary function of peroxisomes.
**Option B:** Degrading hydrogen peroxide is a function of peroxisomes, but it is not the only function. Peroxisomes are involved in other metabolic processes as well.
**Option D:** Peroxisomes do have a role in degrading hydrogen peroxide, so this option is incorrect.

**Clinical Pearl / High-Yield Fact**
Peroxisomal disorders, such as Zellweger syndrome, are rare genetic disorders that affect the function of peroxisomes. These disorders can lead to a range of symptoms, including developmental delays, seizures, and liver disease.

**✓ Correct Answer: C. Both**