The correct answer to the question is : A) Energy can change form, but the total amount of energy stays the same.
EXPLANATION:
Before answering this question, first we have to understand law of conservation of energy.
As per law of conservation of energy, the energy can neither be created nor be destroyed. It only changes from one system to another system, and the total energy of an isolated system is always constant.
The energy transfer diagram is based on this law.
Hence, the best description about energy transfer diagram will be that energy can change form, but the total amount of energy stays the same.