C

Step 1: Understand the concept of electric dipoles. An electric dipole consists of two equal and opposite charges separated by a distance; it creates an electric field around it.

Step 2: Analyze the situation: When an electric dipole is placed in a dielectric medium (like water), it creates an electric field that influences the surrounding electric flux. Water, being a dielectric, facilitates the passage of electric field lines.

Step 3: According to Gauss's Law, the total electric flux through a closed surface is proportional to the charge enclosed within that surface. However, since the dipole has no net charge (as equal positive and negative charges cancel out), the net electric flux through any Gaussian surface enclosing the dipole is zero.

Step 4: This implies that the amount of electric flux going out of the sphere is equal to the amount of electric flux coming into the sphere due to the dipole's field. Thus, for any Gaussian surface that encloses the electric dipole, the flux is conserved.

Therefore, the correct statement is: As much electric flux is going out of the sphere, as much is coming toward the sphere (Option C).