Actually, the correct answer would be D. This is often mistakened. You need to identify a target database (default schema to be read/written/published to) in order to create the pipeline. Databricks will create a blank notebook for you that you will need to add logic into later. I've attached a screenshot from my work environment. I'm in Databricks daily. The key is to pay attention to what the question is actually asking. Now, a blank notebook will not do you any good, but that's not what the question is asking.

I marked up the screenshot as a reference to help you out.