Answer - C.
This is also mentioned in the AWS Documentation.
You can make API requests directly or by using an integrated AWS service that makes API requests to AWS KMS on your behalf.
The limit applies to both kinds of requests.
Option A is incorrect because S3 will not throttle requests just because encryption is enabled.
For example, you might store data in Amazon S3 using server-side encryption with AWS KMS (SSE-KMS)
Each time you upload or download an S3 object that's encrypted with SSE-KMS, Amazon S3 makes a
GenerateDataKey.
(for uploads) or
Decrypt.
(for downloads) request to AWS KMS on your behalf.
These requests count toward your limit, so AWS KMS throttles the requests if you exceed a combined total of 5500 (or 10,000) uploads or downloads per second of S3 objects encrypted with SSE-KMS.
Options B and D are incorrect because these will not help increase performance.