If the cipher is unsupported, the firewall cannot decrypt.
Why this answer
If the client and server negotiate a cipher suite that the firewall does not support, the firewall cannot decrypt the session. The firewall must be able to inspect the SSL/TLS handshake and match the cipher suite to its supported list; if the cipher suite is unsupported (e.g., TLS 1.3-only ciphers on an older firewall), decryption fails and the session is bypassed. Option C is correct because when the server presents an invalid certificate (expired, untrusted, or mismatched), the firewall cannot complete the SSL handshake with the client, so it bypasses decryption to avoid breaking the session.
Exam trap
The trap here is that candidates often confuse policy-based 'no-decrypt' rules (which are intentional exclusions) with technical conditions that force a bypass, or they mistakenly think that invalid certificates always cause decryption to fail when in fact the firewall can be configured to still decrypt with a warning or to bypass based on policy.