The correct option is C Potential energy may be zero at extreme position.
If zero potential energy is chosen at mean position, potential energy and kinetic energy will not be equal in mean position during an SHM starting from the mean position.
If zero potential energy is chosen at extreme position, potential energy is zero at extreme position. As the extreme position is a turning point and motion of a particle undergoing SHM is bounded, the kinetic energy at extreme position is always zero.
Therefore, if extreme position is taken as reference point, potential energy is equal to zero and potential energy is equal to Kinetic energy.
The sum of potential energy and kinetic energy for a particle executing SHM is always conserved. Therefore, total energy does not oscillate harmonically.
Option A, B, C are correct.