The correct option is C Paramagnetic nature of O2
Valence bond theory (VBT) predicted that there will be π-bond in O2 molecule via lateral overlapping. It did not explain anything about the magnetic properties of the molecule.
However, it is experimentally observed that O2 is actually paramagnetic.
This was later explained through Molecular orbital theory (MOT) by introducing bonding and anti-bonding orbitals concept.
Both the overlapping of atomic orbitals and the bond formation can be explained by VBT.