The symbiotic association of algae and fungi is known as

The correct option is lichen.

Let us understand the biological association described in the question step-by-step:
A symbiotic association is a close, long-term interaction between two different biological organisms where both partners benefit from each other (mutualism).

In a lichen, the two partners involved are:
1. Algae (known as the phycobiont or photobiont): The algal partner contains chlorophyll and performs photosynthesis to produce food/organic nutrients for the association.
2. Fungi (known as the mycobiont): The fungal partner provides structural support, protection, and absorbs water and minerals from the surroundings for both itself and the algae.

Let's briefly look at the other options to understand why they are incorrect:
- Mycorrhiza: This is a symbiotic association between fungi and the roots of higher vascular plants, not algae.
- Mycoplasma: These are simple, single-celled organisms (bacteria) that lack a cell wall and are not a symbiotic association.

Therefore, the symbiotic association between algae and fungi is known as a lichen.