The correct answer is C. Amazon RDS Proxy is designed to improve application scalability and resilience by pooling and reusing database connections. By using RDS Proxy, the number of connections each Lambda function has to establish is significantly reduced. This helps decrease the database resource consumption without impacting the scalability of the Lambda functions. Options A and D, which involve setting provisioned or reserved concurrency, do not address the issue of connection management. Option B involves cluster cache management, which is not intended to manage database connections.