The process which makes major difference between C3 and C4 plants is
Photorespiration: It is inhibition of photosynthesis by high O2 level. It was termed as Warburg effect. However, the inhibition was observed mostly in C3 plants. The C4 plants were hardly affected by varying O2 concentrations. This is because of the spatial difference between the carbon dioxide fixation and the commencement of the C3 cycle in the C4 plants. The former occurs in the mesophyll cells, the latter occurs in the bundle-sheath cells.
Hence, the correct answer is 'Photorespiration'.