Option C fits because Windows Hello for Business doesn't need SMS or Authenticator app codes, just the device itself with wired internet to Azure AD. But it's worth noting that if the local PIN was set up ahead of time, users could still use it even if biometrics fail. The others all rely on a phone connection in some way. I think C covers this edge case. Any objections?
Its C, but would the answer change if the requirement was most phishing-resistant method instead of just working offline? A seems tempting but needs network on phone.
Pretty sure it's C here. Windows Hello for Business doesn't depend on cellular or Wi-Fi on the phone, just needs the laptop and a wired internet connection for Azure AD. The other choices like app notifications or SMS all need some phone connectivity, which the scenario says isn't available. If WHfB is set up, users are good to go. Let me know if you see a catch I'm missing.