I think I see the teacher's attempted point, that the carbon and oxygen are combined into carbon dioxide, the problem is they're teaching chemistry and don't know what the difference between products and reactants is.
Also, they're fucking stupid because B is definitely an acceptable answer in this example, especially with the poor grammar causing confusion on C.
Edit: nevermind, missed that there was a published answer key, the teacher is just too arrogant to back down and the board is made of morons.