Answer: C. The environment changed suddenly from a shallow ocean setting to a river system.
Explanation:
The presence of the fossils of shallow oceanic creatures like corals points to the fact that the environment was a shallow ocean at some point. There is also a presence of a layer on top of that which points to a river system.
The fact that the oceanic fossils are beneath the river system layer means that the ocean came first and the river system layer came second. The environment must therefore have been a shallow ocean setting that changed into a river system.