Trailhead says: A manager always has access to the same data as his or her employees, regardless of the org-wide default settings. I found nothing to support C as the correct answer.
https://developer.salesforce.com/docs/atlas.en-us.228.0.securityImplGuide.meta/securityImplGuide/admin_roles.htm
After you share a folder with a role, it’s visible only to users in that role, not to superior roles in the hierarchy.
I think c is correct. After you share a folder with a role, it’s visible only to users in that role, not to superior roles in the hierarchy.
https://developer.salesforce.com/docs/atlas.en-us.228.0.securityImplGuide.meta/securityImplGuide/admin_roles.htm
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