The correct answer is C. both (A) and (B).
Spacers are provided between adjacent coils to provide free passage to the cooling oil and to insulate the coils from each other.
The cooling oil helps to dissipate heat from the coils, and the spacers ensure that the oil can flow freely between the coils. The insulation helps to prevent the coils from touching each other, which could cause them to overheat.
Without spacers, the coils would be more likely to overheat, which could damage the coils and the equipment. The spacers also help to keep the coils clean and free of debris, which can help to improve the performance of the equipment.