Option B is correct because CloudFront can forward cookies to the origin, which allows the origin to generate personalized responses based on the user's session. However, this reduces caching because each user's response is unique. But the question asks to improve performance for dynamic requests.
Actually, for dynamic content that is personalized, caching is not effective. Instead, CloudFront can use origin shield or keep-alive connections to improve performance. But the best option among those given is to forward cookies and enable caching based on cookies? Option B says 'Configure CloudFront to forward cookies to the origin and enable caching based on cookies.' That would allow CloudFront to cache responses for different cookie values, but since each user has a unique session, caching would still be inefficient.
Option C is better: 'Configure CloudFront to use origin shield and enable keep-alive connections to the origin.' That reduces origin load and improves connection reuse. Option D is about Lambda@Edge for real-time transformation, which could help if the API responses can be assembled at edge. However, the most effective way to improve performance for dynamic requests is to reduce the number of requests hitting the origin by using techniques like origin shield, keep-alive, and possibly Lambda@Edge for caching fragments.
But among the options, Option C is the most straightforward. Option A is wrong because disabling caching defeats the purpose. Option B is wrong because caching personalized content based on cookies leads to many cache misses.
Option D is possible but complex. The correct answer is C.