Solution:
Given circle equations are and .
The formula for common chord of two circles is
The equation of common chord is
Now, the required circle must pass through the point of intersection of and to have their common chord as diameter.
Let the required circle is .
The equation of any circle passing through the intersection of is
The center of a circle is and it's radius is .
Center of is .
As the diameter passes through the center of the circle i.e. passes through the center.
Then the equation of the circle will be,
Therefore, the equation of the required circle is .
Therefore, the correct answer is option