The correct answer is: C. has small magnitude and high power factor.
No-load current is the current that flows in a transformer when there is no load connected to the secondary winding. It is caused by the magnetizing current, which is required to create the magnetic field that induces the voltage in the secondary winding. The magnetizing current is relatively small, and it has a high power factor. This means that it is mostly in phase with the voltage, and it does not contribute significantly to the losses in the transformer.
The other options are incorrect. Option A is incorrect because the no-load current has a small magnitude. Option B is incorrect because the no-load current has a high power factor. Option D is incorrect because the no-load current has a small magnitude and a high power factor.