Final answer:
The children in Bandura's Bobo doll study exhibited latent learning by acquiring aggressive behaviors through observation, which they later displayed when motivated by a reward.
Step-by-step explanation:
In Bandura's study involving the Bobo doll, the observational learning of the children demonstrated that they had learned aggressive behaviors by watching a model without performing the actions themselves immediately. This phenomenon, where knowledge is acquired without direct action but revealed later when there is motivation, is known as latent learning. The children's choice to imitate the model only after being offered a reward aligns with Bandura's steps in the modeling process, primarily highlighting the importance of motivation which is impacted by vicarious reinforcement or punishment. Therefore, the correct answer to the question is C. latent learning.