What type of energy is stored in a wounded spring watch?

• In a watch, the spring is permitted to move in a controlled manner instead of escalating and liberating which means the spring is wounded.
• The work done to wound the spring gets stored in the form of elastic potential energy. 
• As soon as the spring is unwounded, all the potential energy is converted to kinetic energy and transferred to its moving parts.

Therefore, 'Potential energy' is the correct response.