The correct answer is Option C - 4 sides
At each iteration a line segment is divided into three equal parts.
The middle third is removed and replaced by the two sides of an equilateral bump, so that the removed portion is replaced by two new segments.
Therefore one original side becomes four sides, each of length 1/3 of the original side.
As a consequence, the number of sides at each step increases by a factor of 4, and the total perimeter is multiplied by 4/3 at each iteration.
Each side becomes 4 smaller sides.