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Like the thorny ballooning of a frightened pufferfish or the sudden appearance of angry sapphire hoops for which the blue-ringed octopus is named, so the California newt's display of its red underbelly is a clear warning that predators ignore at their peril.

(A) so the California newt's display of its red underbelly is a clear warning that predators ignore at their peril

(B) so it is at their peril that predators ignore the California newt's display of its red underbelly, a clear warning

(C) the California newt's displaying its red underbelly is a clear warning for predators, so they ignore it at their peril

however,the California newt's display  已经归属于display 了, 所以我认为不能够指代California newt

从逻辑意思上看只能指代California newt, 虽然从语法角度上看只能指代the California newt's display

根据逻辑意思优先的原则,我认为还是指代California newt的好