Final answer:
A run-time error occurs when 'ABC' is input because the Integer.parseInt() method cannot convert non-numeric strings into integers, leading to a NumberFormatException.
Step-by-step explanation:
If the user inputs 'ABC' when prompted by the code snippet, a run-time error occurs. This is because the Integer.parseInt(str) method is being called with a String that cannot be parsed into an integer. The Integer.parseInt() function requires a string that contains only numeric characters that can be converted into an integer value.
However, because 'ABC' does not represent a numeric value, the method throws a NumberFormatException, which is a type of run-time error. The correct option from the given choices is C) Run-time error.