Answer:
Should be ... C. It became more active in the promotion of Catholicism in Europe.
Explanation:
This is the best answer, and you can derive it through simple process of elimination.
So for (A), if you know that he completely outlawed the Protestants that followed Martin Luther, you know this answer is wrong.
For (B), if you know that it was in his interest to destabilize the Vatican, then this answer is also wrong.
And for (D), of course he did not attempt to limit his own power.