c. Produce a novel volatile molecule that attracts predators of the caterpillars.
Explanation:
Co-evolution is the phenomena in which two organisms that are related to one another influence the development of new traits in each other.
In the given condition the caterpillar evolved a trait that helped it to overcome the effects of the toxin produced by the plant.
In response to the resistance developed by the caterpillar the plant will develop a new mechanism of defense like, it will produce some volatile substance that will attract the natural predators of the caterpillar. So the predators will feed upon the caterpillars and bring down their population.
In turn the plant will be able to survive.