C is correct. The passive-interface command stops EIGRP packets from going out through a specified interface. You'd use it on interfaces where you don't want EIGRP to make connections, like on LAN interfaces with no EIGRP neighbors around.
Given answer is correct, labbed and as soon as you configure passive-interface it tears down the neighbor as below.
EIGRP-IPv4 100: Neighbor 192.168.12.1 (Ethernet0/0) is down: interface passive
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