Answer
The answer is C. Stereotype.
Step-by-step explanation
Stereotypes are generalizations of groups of people. The reason they are generalizations is because stereotypes are held against all people in a group.
In this instance, the group of people that is being mentioned are school dropouts and the generalization is that they are dishonest. While dishonest school dropouts do exist, to say that they all are dishonest is stereotyping.