The correct answer is: C. Ceramic disc capacitor.
Ceramic disc capacitors are usually preferred for closer tolerances because they have a higher capacitance per unit volume than other types of capacitors. This means that they can be used to create capacitors with a higher capacitance without being too large or bulky.
Paper capacitors are made of a thin sheet of paper that is coated with a dielectric material. Mica capacitors are made of mica, which is a type of mineral that has excellent electrical properties. Both paper and mica capacitors have a lower capacitance per unit volume than ceramic disc capacitors, so they are not usually preferred for applications where close tolerances are required.
None of the above is not the correct answer because ceramic disc capacitors are the type of capacitor that is usually preferred for closer tolerances.