jk, this type of question has been asked before. If you call Haas they will tell you to take the C. You can call them to verify if you like. It would be wise to do what they recommend since they are the ones reviewing your application.
Either way your application will take a hit. You need to have something awesome to counter the C or worse a failed class with a retake. A badass internship or a heartfelt home life story might do it.