The correct answer is C. Equipment performance testing.

In PSP physical security implementation, testing is used to verify that installed security equipment and systems actually perform according to required functional and performance objectives. The ASIS PSP Body of Knowledge includes functional requirements, performance requirements, success metrics, commissioning, and final acceptance testing as part of physical security system design and implementation.

Equipment performance testing is the specific type of testing used to determine whether equipment or a system is functional, has adequate sensitivity, and meets its design and performance objectives. This matches the wording of the question directly. Physical security testing guidance also describes security system performance testing as determining whether security equipment is functional, has adequate sensitivity, and meets design and performance objectives under operating conditions.

The other options are not the best answer:

A. Factory acceptance testing is normally conducted before delivery or installation to verify equipment at the factory or vendor stage.

B. Reliability performance testing focuses more on dependability, availability, or continued operation over time.

D. Site acceptance testing verifies the installed system at the actual site, but the wording about functionality, sensitivity, and design/performance objectives specifically describes equipment performance testing.

Therefore, the correct answer is C. Equipment performance testing.