Let us trace what happens when the consumer runs first while the buffer is empty:
Initial values: s=1, n=0.
The consumer executes semWait(s). Since s=1, s becomes 0 and the consumer proceeds.
The consumer then executes semWait(n). Since n=0, the consumer is blocked waiting for n to become positive.
Now, the producer tries to produce an item. It executes produce() and then semWait(s).
Since s=0 (held by the blocked consumer), the producer is also blocked waiting for s.
Both processes are waiting on each other and neither can proceed: the consumer holds s and waits for n, while the producer holds nothing, waits for s, and is the only entity that can signal n.
Thus, a deadlock occurs if the consumer acquires semaphore s when the buffer is empty. Hence, option (C) is the correct statement.