Which of the listed conditions will occur to the ship's center of gravity if 200 tons of steel is transferred to the ship’s cargo-hold from shore side?

Correct Answer: Option C — The center of gravity will be lowered.

Adding weight to a ship's cargo hold, which is typically located below the vessel's existing center of gravity, results in a downward shift of the center of gravity. This improves initial stability by increasing the distance between the center of gravity and the metacenter, effectively lowering the overall KG.