The correct answer is C. a story that features itself as a character. Metafiction is a narrative technique in which the work self-consciously calls attention to itself as a work of fiction.
Some metafiction common techniques are:
addressing the reader
a story within a story
a story about someone reading or writing a book
characters that are aware that they are taking part in a story
commenting on the story while telling it, either in footnotes or within the text
a story with a narrator that exposes himself as both a character and the narrator