The answer is C) they can be differentiated to form insulin-producing cells.
Diabetes is characterized by high blood sugar level. In normal condition, insulin secreted from pancreas maintain blood sugar level by decreasing it. In Type 1 diabetes beta cells of a pancreas which produce insulin are destroyed. Thus, if there is no enough insulin, the level of sugar in the blood remains high. Therefore, stem cells can be used as precursors of pancreatic cells in order to differentiate into insulin-producing cells. This would provide enough insulin to maintain blood sugar level.
