Correct option is C
In Pulse Code Modulation (PCM), when the input signal is a random process, the quantization noise power mainly depends on the quantization step size, which is directly related to the number of quantization levels L.∙ Increasing the number of quantization levels => smaller step size∙ Smaller step size => lower quantization noiseMathematically, quantization noise power is proportional to:Δ2∝(L1)2Thus, the number of quantization levels is the dominant factor affecting quantization noise.