Check the errata, or click on "PREVIEW" of the book when you log into your NCEES account. This was a mistake that has since been corrected in newer versions of the NCEES CBT Power PE Practice Exam:
account.ncees.org > Exam Prep > PE > PE Electrical and Computer: Power Practice Exam > View Product > Preview this book now
The answer was changed to just A and B since C is incorrect.
Zero sequence phasors are all equal in magnitude but have a zero-degree displacement angle between phases since the angle of each zero-sequence phasor is the same.
Edit - Beatin by
@akyip!