Concept:
The flow arrangement in a heat exchanger dictates its thermal efficiency. Counter-current flow is thermodynamically superior to parallel flow because it maintains a more consistent temperature gradient along the entire length of the exchanger.
Step 1: In parallel flow, both fluids enter at the same end. The cold fluid can never reach a temperature higher than the exit temperature of the hot fluid because the driving force drops to zero as their temperatures converge.
Step 2: For any given inlet and outlet temperatures, a counter-current exchanger always yields a mathematically higher Log Mean Temperature Difference (LMTD) than a parallel one, meaning it transfers heat more efficiently.
Step 3: In counter-current flow, the fluids enter at opposite ends. The exiting cold fluid is heated by the incoming, hottest hot fluid.
Step 4: Because of this opposing thermal profile, the cold fluid can be heated to a temperature that is actually higher than the exit temperature of the hot fluid.
Step 5: Therefore, counter-current exchangers allow for a "higher temperature approach" (the cold fluid can approach the highest temperature of the hot system), making option (C) the only true statement.