Technically, if a site is dedicated for services, then it can be spoke WAN Edge as well. But i can say that Answer is C thinking of hub and spoke architecture and spokes can't communicate with each other.
Service route should be configured on the site belongs to services.
If HUB site include FW, the service route will be configured on Hub Edge.
https://www.itbase.tv/2023/01/09/cisco-sdwan-p6-overlay-management-protocol-service-routes/
Should be C. hub WAN edge
https://sdwan-docs.cisco.com/Product_Documentation/Software_Features/SD-WAN_Release_16.3/07Policy_Applications/02Service_Chaining/Service_Chaining_Configuration_Examples
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