Final answer:
FIPS 199 categorizes information systems by impact level, and a major application is expected to have an impact level of either Moderate or High.
Step-by-step explanation:
The Federal Information Processing Standard (FIPS) Publication 199 is a U.S. federal standard that categorizes information and information systems based on the potential impact on an organization should there be a breach of security (loss of confidentiality, integrity, or availability). When assessing a major application, it is expected to have an impact level of either Moderate or High.
This classification is determined by reviewing the potential adverse effects on organizational operations, assets, or individuals. A system with a Low impact level would not be deemed a major application as per FIPS 199, and thus the correct options would be B) Medium or High, which translate to Moderate or High when using the terms specified within the FIPS 199 standards.