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C is corrent. The internal rate of return is the cost of capital percentage at which the net present value profile crosses the horizontal axis. The net present value profile for Project 2 intersects the horizontal axis at a higher cost of capital percentage than does the net present value profile for Project 1.
A is incorrect because this is not true.
B is incorrect. The net present value profile for Project 1 intersects the horizontal axis at a lower cost of capital percentage than does the net present value profile for Project 2.
D is incorrect. The net present value of profiles of Projects 1 and 2 intersect. Neither project will have a higher net present value than the other at all cost of capital percentages. To the left of the intersection point, Project 1 has a higher net present value and to the right of the intersection point, Project 2 has a higher net present value.