A verb is used to express an occurrence, action, or state. It is the grammatical center of the predicate in a sentence.
An auxiliary verb is a verb which is used in the formation of tenses, moods, tones, etc.
Option C is correct as have replaced and was still indicate the use of needn't.
The other options are wrong as no other tense can be used here.
The correct answer is C) needn't.