A Microsoft file hosting and synchronization service.
No, i donot have that option. I'm not using the desktop app. I'm using the native windows store app on 8.1 and it does not have that option. you guys should know better!! :)
Anyways, i fixed the issue. Seems like it was the issue with my stored credentials. I deleted all my store credentials from control panel->Credential Manager related to skydrive, office and my MS connected account. I reopened the office apps and logged in again, and now everything seems to work fine.