Picture the displacement-versus-time waveform for each type of vibration. Undamped free vibration traces a plain, unchanging sine wave. Forced vibration in steady state traces a wave of constant amplitude set by the driving force. Only one type of waveform shows a shrinking envelope from cycle to cycle. Testing each option against this picture:
The shrinking-envelope waveform matches the general description of damped vibration.
Therefore, the correct answer is damped vibration.