This is also assuming the cluster is connected to the internet, which in my world would never be the case. But yes I agree with C for commercial flavors of Nutanix.
The correct answer is C, when you enable auto inventory LCM is automatically updated.
This is also done on the PRISM Element level so you dont need PRISM Central.
Enable LCM Auto Inventory is available on both (Prism Central and Prism Element). But you don't have obligation to install/configure a Prism Central on a Cluster, so for the scenario on this question, the correct option is C.
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