C is corrent. Per ASC 250-10-45-18, the effect of a change in accounting principle which is inseparable from the effect of a change in accounting estimate should be accounted for as a change in accounting estimate. C is corrent because changes in estimate should be accounted for in the period of change and also in any affected future periods.
A is incorrect because retrospective application is required for changes in accounting principle and changes in entity.
B is incorrect because errors would include mathematical mistakes, mistakes in applying principles, oversights or misuse of available facts, and changes from unacceptable to acceptable GAAP (ASC Topic 250). The situation described in this question does not meet the description of an error.
D is incorrect because the pro forma effects of retroactive application are not used for a change in accounting principle.
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