We only care about strings belonging to
$0^*=\{\epsilon,0,00,000,\ldots\}$.
Therefore any transition consuming a symbol other than $0$ is irrelevant.
Delete those transitions from $N$. Call the resulting NFA $N'$.
Now, $L(N)\cap 0^*\neq\varnothing$
exactly when some accepting state of $N'$ is reachable from its start state.
So we only need a graph-reachability search.
That is polynomial and avoids the potentially exponential NFA-to-DFA subset construction in A.
Therefore,
Answer : $\boxed{\mathrm{C}}$