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The key here is LEAST OPERATIONAL OVERHEAD so A&E is definitely out of the question because in order for this to work, you have to reconfigure the behavior of CloudFront, create OAC for the distribution to work with a specific error code. It's very complex. On the other hand, A&C is much more straight forward, the idea is Route 53 will do the health check with the requested resource i.e CloudFront distribution and trigger failover record if the distribution is unhealthy.
The scenario states that the application immediately and successfully loads when the user refreshes the browser. A health check such as in C would direct users to the error page for a longer period of time, until future health checks have succeeded again. Until then, ALL users will receive error pages. In effect, you will make the user experience worse.