To me the wording of the answers in B and C are to be carefully considered.
If it is 'next to' then it is in the other one. So, Heat affected zone next to the base metal is 'in the weld zone'. And, Heat affected zone next to the weld metal is 'in the base metal'. Note: it doesn't say 'in', it says 'next to'.
But remember, there are no trick questions on the CWI exams.
Personally, my choice would be 'C'. The base metal along the edge of the weld metal in the HAZ is going to exhibit the highest hardness. And a break will occur just to the side of that hard spot pushing it a little further into the base metal where the hard transitions back to proper strength but yields a stress riser with changing properties, grain boundaries, etc.
Now, I'll await the masters' analysis of my poorly worded reasoning.
He Is In Control, Have a Great Day, Brent