Concept:
Cloning vectors are selected based on insert size, replication ability, selectable markers, and host compatibility.
Step 1: Identify insert size.
The DNA fragment is approximately:
\[
40 kb
\]
This is too large for normal plasmid vectors like pUC.
Step 2: Understand cosmid vectors.
Cosmids contain plasmid features along with bacteriophage lambda cos sites. They can carry large DNA fragments, usually around \(35-45 kb\).
Step 3: Check required features.
The vector should replicate autonomously, allow selection, and have bacteriophage origin. A cosmid shuttle vector satisfies these requirements.
\[
\therefore \text{Correct Answer is (C)}
\]