Which of the following sentences uses capitalization CORRECTLY?

A. I just read O. Henry's short story “The gift of the Magi.”
B. I just read O. Henry's short Story “The gift of the Magi.”
C. I just read O. Henry's short story “The Gift of the Magi.”
D. I just read O. Henry's short story “The Gift Of the Magi.”

C. I just read O. Henry's short story “The Gift of the Magi.”

The correct sentence that uses capitalization correctly is option C: "I just read O. Henry's short story 'The Gift of the Magi.'"