Since, we need to know whether Zu will enter the competition this year, the premise (answer choice) needs to provide information about present or future events.
A. Ben Zu is an eccentric director and no one can really anticipate his next move.
Incorrect. Option A is a vague statement and it does not strengthen the likelihood of Zu participating in the Competition.
B. Ben Zu’s last few films were adaptations of some best-selling Chinese novels.
Incorrect. This is about past.
C. a reliable source has disclosed that the director has made arrangements to meet up with the Guild Authorities to complete the competition formalities.
Correct. If this is true then the likelihood of Zu participating in the competition increases.
D. most of Ben Zu’s films in the past have been based on true events and biographies.
Incorrect. Again, this is about past.
E. the media analysts are usually right in their projections, and their predictions are quite reliable.
Incorrect. This is a claim/projection which may or may not be true.
Answer C