The correct answer is C.
The limit in A does exist:

The limit in B also exists: for any
,

But this alone does not prove the 2D limit exists.
only captures all the paths through the origin that are straight lines.
The limit in C also exists, but it's not the same as either of the limits along the paths used in A and B.

That this value is non-zero tells us the original limit does not exist.
The claim in D is generally not correct. That
is undefined does not automatically mean the limit doesn't exist. A simpler example:

yet
is undefined.