Final answer:
Conservation in the context of the law of conservation of energy means the total energy in an isolated system is unchanged. This total energy neither increases nor decreases but can change forms or be transferred.
Step-by-step explanation:
The law of conservation of energy states that the total amount of energy cannot be created or destroyed in an isolated system. The term conservation in this context means that the total energy remains constant; it is preserved throughout any process. Hence, the correct answer to the student's question is (c) the total amount of energy is in balance and remains the same. While energy can change forms, such as from kinetic to potential or vice versa, or be transferred from one object to another, the overall energy of the system remains unchanged.