The correct answer is C.
OBJ-5.7: Since the customer’s IP address is 169.254.12.45, it is an APIPA address. Since the workstation has an APIPA address, it means the DHCP server was unreachable. Automatic Private IP Addressing (APIPA) is a feature of Windows-based operating systems that enables a computer to automatically assign itself an IP address when there is no Dynamic Host Configuration Protocol (DHCP) server available to perform that function. APIPA serves as a DHCP server failover mechanism and makes it easier to configure and support small local area networks (LANs). If no DHCP server is currently available, either because the server is temporarily down or because none exists on the network, the computer selects an IP address from a range of addresses (from 169.254.0.0 – 169.254.255.255) reserved for that purpose.