The correct option is C Vmax decreases and KM remains the same
KM stands for Michaelis-Menten constant. It is the substrate concentration at which the velocity of the reaction is half of the maximum velocity that can be achieved. It is the indirect measure of the affinity of the enzyme and the substrate. There is an indirect relationship between the value of KM and the affinity between substrate and enzyme molecules. Higher KM=lower affinity; lower KM=higher affinity.
Vmax stands for the maximum velocity or rate that a reaction can achieve.
A non competitive inhibitor binds at a site other than the active site. It can bind to the free enzyme or the ES complex. It changes the shape of the active site such that substrate is not able to bind to it. Since the inhibitor can bind to either the free enzyme or the ES complex, Vmax is lowered. The KM however remains the same, because to reach half of the maximum attainable velocity, the substrate concentration remains the same.