Final Answer:
Once the steel locking pin is removed, the cup can be moved in both upwards and downwards directions. Therefore, Option C is the correct choice.
Step-by-step explanation:
The steel locking pin in an axle stand typically secures the adjustable cup in place, preventing it from moving. When the pin is removed, it releases the cup, allowing it to move freely. In this scenario, the cup can be adjusted both upwards and downwards along the stand's vertical column. This flexibility is crucial for setting the desired height of the axle stand to provide support at different levels. The ability to move the cup in both directions allows for easy adjustment and adaptability to various vehicle lifting or support needs.
Option C is the answer.