The best explanation for the decrease in the amount of energy transferred to each succeeding level is released as heat and used in daily metabolism. Option C is correct
The diagram depicts a classic food pyramid, where energy flows from producers (grass) to herbivores (rabbit), then carnivores (snake), and finally top predators (hawk). At each step, some energy is lost as heat due to the organism's metabolic processes, such as maintaining body temperature, movement, and other vital functions.
Some energy is indeed stored in the organic tissues of each level, but this doesn't explain the decrease in transferable energy. The stored energy gets used up for metabolism and other activities, contributing to the heat loss.