For process $P_i$, the entry code is:
$\texttt{flag[i] = TRUE}$
$\texttt{turn = i}$
and it waits while:
$\texttt{while(flag[j] \&\& turn == j);}$
Suppose $P_j$ enters the critical section before $P_i$.
After leaving the critical section, $P_j$ can again execute:
$\texttt{flag[j] = TRUE}$
$\texttt{turn = j}$
Now $P_i$ again finds $\texttt{flag[j] = TRUE}$ and $\texttt{turn == j}$, so it continues waiting.
This can happen repeatedly. Hence, $P_i$ may wait indefinitely.
Therefore, bounded waiting is violated.
Mutual exclusion and progress are still satisfied.
$\boxed{\text{Answer: C}}$