If a new report type is created but users cannot select it, it is usually because the report type status is ''In Development''. Salesforce only makes report types available in the Report Type list once they are deployed. (Salesforce Help)

B . Access to objects could prevent report creation, but the question assumes the user can create reports on records they own.

C . Deploye is the correct deployed state, which would make the report type selectable.

D . Create and Customize Reports permission is required, but the question specifies users are trying to create the report.

===========