The app builder should select Enhanced List for the Related List type for the Related List Lightning component. Enhanced List allows users to see ten fields and sort and wrap text on their Related Lists. Option B is incorrect because Basic List only allows users to see four fields and does not support sorting or wrapping text on their Related Lists. Option C is incorrect because ListView does not show Related Lists on record pages, but rather shows list views on object home pages or tabs. Option D is incorrect because List Class is not a valid Related List type.