The correct answer is: B. Ceramic capacitor
Ceramic capacitors are the most common type of capacitor used for temperature compensation. They have a very low temperature coefficient, which means that their capacitance changes very little with temperature. This makes them ideal for use in circuits where it is important to maintain a constant capacitance, such as oscillators and filters.
Air capacitors are also used for temperature compensation, but they are not as common as ceramic capacitors. Air capacitors have a higher temperature coefficient than ceramic capacitors, so they are not as stable. However, they have a higher capacitance than ceramic capacitors, so they can be used in applications where a higher capacitance is required.
Paper capacitors are not used for temperature compensation. They have a high temperature coefficient, so their capacitance changes significantly with temperature. This makes them unsuitable for use in circuits where it is important to maintain a constant capacitance.