It is to the south of the arctic circle and the north of Antarctica. The arctic circle is at the top of the globe, like Greenland. Anartica is at the bottom of the globe, beneath Australia.
"C" is the correct answer.
It is not west of Europe, so that's out. It is not west of the Mediterranean, and it isn't east of the Americas, that would be more like Europe.
I hope this helps!
~kaikers