Choice "C" is correct. Assuming that the loss occurred under a shipment contract, risk of loss under the UCC is controlled by the shipping terms, not by title.
Choice "a" is incorrect. The method of shipping the goods (e.g., car vs. train) is irrelevant to who bears the risk of loss under the UCC; the shipping terms are the key when the contract is a shipment contract.
Choice "b" is incorrect. Risk of loss under the UCC is controlled by the shipping terms in a shipment contract, not by title.
Choice "d" is incorrect. Risk of loss under the UCC is controlled by the shipping terms in a shipment contract, not by how the goods were lost.