I think we need the OP to post back with the answer so that we can then theory-craft as to how the review materials obtained that answer. I'm wondering if this is a question that allows multiple answers to be selected, because it says “may qualify”, not “is most likely to qualify”, and both a local college and a medical school may qualify, but an individual or a partner can't be a 501(c)(3).
The official text for 501(c)(3) is here: https://www.law.cornell.edu/uscode/text/26/501
(3) Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.
Under this definition, I don't see anything that would make a local college any more qualified than a medical school, as both are definitely in the “educational purposes” category. Some are for-profit, of course, and would therefore not qualify, but that can be true of both. Personally, if I had to pick one as the best answer, I'd lean towards “medical school”, since a government-funded local college seems more likely to me than a for-profit medical school, and I wouldn't generally think of a governmental entity as a 501(c)(3), though I suppose it could be organized as such.
I don't see anything in 501(c)(3) itself referring to local, so I think that B and C are both equally valid in the wording of 501(c)(3) itself. I'd want to know what the right answer is and what defense the review material gave for its answer before theory-crafting further as to what would make one or the other more or less right.