The movement of water up a plant's stem can be best modeled by option C: "Place the tip of a sponge in water dyed with food coloring. Watch how the water moves up the sponge."
This option illustrates the process of capillary action, which is similar to how water moves up through the xylem in a plant. The sponge absorbs the dyed water and demonstrates how water can move against gravity through a porous medium, paralleling the movement of water in a plant's stem.
Options A, B, and D do not effectively represent the water movement mechanisms in plants (like capillarity and adhesion) as well as option C does.