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We have 5 choices for the first place. For the second place we have one less choice. For the third place we have one less choice than for the second place.
C
We want to find the number of ways the 5 finalists can finish in first, second, and third place. We have 5 choices for the first place. Then, the number of choices for the second place is one less than for the first place.
5-1= 4
Finally, we have 5-2= 3 choices left for the third place. By the Fundamental Counting Principle, the number of ways to arrange the finalists in the first three places is the product of the number of choices for each of these places.