To solve this question, the user needs to know the different types of variables that can be declared in Java and their scope.

Now, let's go through each option and explain why it is right or wrong:

A. Static: This option is incorrect because a static variable is a variable that is declared with the static keyword and belongs to the class, not to any instance of the class.

B. Private: This option is incorrect because a private variable is a variable that is declared with the private keyword and is only accessible within the class it is declared in.

C. Local: This option is correct. A local variable is a variable that is declared inside a method or block of code and has a scope that is limited to that method or block of code. The variable can only be accessed within the method or block of code it was declared in, and once the method or block of code is exited, the variable is destroyed.

D. Serial: This option is incorrect because there is no such thing as a "serial" variable in Java.

E. b and d: This option is incorrect because option d is invalid, and option b is incorrect because it describes a different type of variable than the one being asked for.

Therefore, the answer is: C. Local