The correct response is:
Car C has the most potential energy because potential energy increases with height and it is at the top of the hill.
Potential energy is determined by the height of an object from a reference point (typically the ground) and can be calculated using the formula:
\[ \text{Potential Energy} = mgh \]
where \( m \) is the mass, \( g \) is the acceleration due to gravity, and \( h \) is the height above the reference point. Since Car C is at the top of the hill, it has the greatest height and thus the greatest potential energy compared to Car A (at the bottom) and Car B (halfway down).