C is Correct answer.
When a physical NIC connects to the virtual switch or when traffic is rerouted to a different physical NIC in the team, the virtual switch sends notifications over the network to update the lookup tables on physical switches. Notifying the physical switch offers lowest latency when a failover or a migration with vSphere vMotion occurs.
C is correct answer. The question might be switch property, not failover policy.
https://docs.vmware.com/en/VMware-vSphere/6.7/com.vmware.vsphere.html.hostclient.doc/GUID-5DF4F1AE-4B75-4912-9E03-8F9E6A48BBB5.html
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