Overflow condition is meant for range exceeding condition of a signed number..
So this happens in 2's complement number addition if either there is a carry in to the MSB of the result or carry out of the MSB of the result .But both should not happen at the same time..
So this scenario can be represented by XOR of Cout (Carry out of MSB) and Cn-1 (Carry in to the MSB)..
Hence C) is the correct answer..