The correct answer is option 3, Small Intestine. The small intestine is the organ that has finger-like outgrowths called Villi (singular Villus). The villi are tiny, finger-like projections that line the inner wall of the small intestine. They increase the surface area of the small intestine, allowing for more efficient absorption of nutrients from the digested food. Each villus contains a network of blood vessels and a lacteal, which helps in the absorption of nutrients into the bloodstream. The villi also play a role in slowing down the movement of food through the small intestine, allowing more time for nutrient absorption. Therefore, the small intestine is crucial for digestion and nutrient absorption due to the presence of these villi.