The obvious answer is AB and a nuanced answer is AC. The packet flow shows clearly AB but really in application detection the decoders are used and the tunneled applications are identified so there is kind of overlap in real application identification process in the packet flow. One thing to remember is do not pick nuanced answers only pick the obvious answers in the exam!!
I think this is a bad question, because the PAN-OS Packet Flow Sequence says that during Application Identification, the application session is identified, but it also says pattern-based application identification is used. So really the answer could be A&B or B&D.
See both the packet flow diagram, as well as Section 5 ("...the firewall identifies the session application..."
https://knowledgebase.paloaltonetworks.com/KCSArticleDetail?id=kA10g000000ClVHCA0
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