This topic is actually quite controversial, but the answer in this case would be C.
Just some food for thought, the 2nd law of thermodynamics entropy of the universe is always increasing, but that doesn't necessarily mean that earth's entropy has to. As long as the net change in entropy of the universe is increasing it doesn't matter if one planet is decreasing a nominal amount. Next, Earth as said is not a closed system and you could argue that the sunlight and energy from the sun is increasing the total energy within the system that is earth meaning that it is increasing in entropy. Next, if you consider increasing entropy as an increase in the number of possible permutations that the universe or parts of the universe can take, then it is completely possible that an ordered planet and life is possible, although rare. This theory explains why there are so many life forms and why entropy is actually increasing when divergent evolution occurs.