Understand the light reactions of photosynthesis: These reactions occur in the thylakoid membranes of chloroplasts and involve the conversion of light energy into chemical energy, producing ATP and NADPH while releasing oxygen as a byproduct.
Identify the key reactants in the light reactions: The primary reactants are water (H$_2$O), light energy, and NADP$^+$, which is reduced to NADPH during the process.
Analyze the role of water (H$_2$O): Water is split during a process called photolysis, which occurs in Photosystem II. This splitting produces electrons (to replace those lost by chlorophyll), protons (H$^+$ ions), and oxygen (O$_2$) as a byproduct.
Eliminate incorrect options: C$_6$H$_{12}$O$_6$ (glucose) is a product of the Calvin cycle, not a reactant in the light reactions. O$_2$ is a byproduct of the light reactions, not a reactant. NADP$^+$ is a reactant, but the question specifies H$_2$O as the correct answer.
Conclude that H$_2$O (water) is the correct answer because it is directly involved in the photolysis process, providing the electrons needed for the light reactions to proceed.