Final answer:
The understanding of category membership in children develops over time. At 2-years-old, children are not able to understand the innate properties of a given category, but by the age of 5, they can understand these properties.
Step-by-step explanation:
The understanding of category membership in children develops over time. It is incorrect to say that 3-year-old children are able to understand that members of the same category share similar characteristics (option A). At 2-years-old, children are not able to understand the innate properties of a given category, such as knowing that you cannot change a raccoon into a skunk by painting it (option B). However, children are able to understand the innate properties of a given category, including the inability to change one object into another by modifying its appearance, by the age of 5 (option C). Furthermore, children begin to generalize specific characteristics of a category member to other members of that category by the age of 5 (option D).