Step 1: The stem asks for the FALSE statement about Streptococcus pneumoniae, so verify each option and pick the one that is incorrect.
Step 2: Option A is true. The polysaccharide capsule is the principal virulence factor of pneumococcus; it resists phagocytosis, and unencapsulated strains are avirulent.
Step 3: Option B is true. Pneumococcus is the commonest bacterial cause of community-acquired pneumonia and of acute otitis media, and also of acute bacterial sinusitis.
Step 4: Option D is true. Pneumococcus is bile soluble (bile sensitive); bile salts activate its autolysin, which is the basis of the bile solubility identification test.
Step 5: Option C is FALSE. Pneumococcus is in fact one of the COMMONEST causes of bacterial meningitis in adults and children, not the least likely cause. Therefore the false statement, and the correct answer, is option C.