The best explanation that applies the rock layer phenomena to the relative age of these fossils is:
C. Fossil 2 is from an older organism than Fossil 1 because it first appears in a lower rock layer.
In geology, the Law of Superposition states that in undisturbed strata, the oldest layers are at the bottom and the youngest are at the top. If Fossil 2 (the trilobite fossil) is found in a lower rock layer than Fossil 1 (the horseshoe crab fossil), it indicates that trilobites existed before horseshoe crabs, illustrating the principle of relative dating based on rock layers.