The correct option is C Sharing of one or more resources between the two species
Niche/ecological niche is a specific part of habitat occupied by individuals of a species which is circumscribed by its range of tolerance, range of movement, microclimate, type of food and its availability, shelter, type of predator and timing of activity.
Two or more species cannot use the same niche despite having a mutualistic association. Organisms or populations in the competition have a niche overlap of a limited resource for which they compete. Both owl and cat feed on shrews and mice. They occupy the same niche because of being ecological equivalents though their habitats are different.
So, the correct answer is 'sharing of one or more resoources between the two species'.