For an exothermic reaction, heat is a product. And if temperature is reduced, that is essentially like removing a product, and so it will shift towards the product (which would be the exothermic side).
For an endothermic reaction, heat is a reactant.And if temperature is reduced, that is essentially like removing a reactant, and so it will shift towards the reactants (which would be the exothermic side).
The correct answer is C) It shifts in the exothermic direction.