The scrum team follows horizontal decomposition of Product Backlog items. This is NOT recommended.
Correct answer is C. It is preferable to decompose the Product backlog items such that each team can produce usable business functionality instead of producing a technical component. Such decomposition based on usable business functionality is also called as vertical decomposition. A horizontal decomposition on the other hand makes the team as technical component team that will have external dependencies.
As the previous answer states, a team should be looking to create something that can be used as part of a business instead of a purely technical goal. Some research into the idea gives me the answer of C as well. This particular scrum team follows the horizontal breakdown of backlogged products and doing data functionality is not recommended at this time.
For those still new to the world of scrum teams, the most basic idea of horizontal breakdown of product backlogs is that you take a product, and break it down into different “stories” the consumer will do. Examples include purchasing something with a specific credit card or adding something to a cart online. Once the “stories” have been identified, the teams should work on making that possible for the consumer.