We will justify all statements one by one as,
(a) A sparrow flying in the sky possesses kinetic energy, which can be transformed into work.
(b) A sparrow moving slowly on the ground possesses kinetic energy, which can be transformed into work.
(c) A sparrow in the nest does not possess any kinetic energy as it is at rest. It does not possess the ability to do work in terms of motion of the body.
(d) A squirrel going up a tree possesses kinetic energy, which can be transformed into work.
Therefore, the answer is:
(c) A sparrow in the nest of a tree.