C (Transparent firewall): Operates at Layer 2, allowing filtering and inspection of traffic within the same subnet without requiring IP routing changes. It performs deep packet inspection while maintaining Layer 2 adjacency, making it ideal for intra-subnet traffic control in data centers.

This allows security segmentation inside broadcast domains, enforcing security policies even for east-west traffic.

Other options explained:

A: Routed firewalls require subnet boundaries and are not ideal for intra-subnet control.

B: VLAN ACLs provide basic filtering but lack deep packet inspection capabilities.

D: Zone-based firewalls are primarily designed for inter-subnet (Layer 3) traffic segmentation.