Answer-first summary for fast verification
Answer: Wheels
Databricks supports installing custom Python code packages using Wheel distributions. Wheels (.whl) are the standard built package format for Python and are widely supported. Options A (sbt) and D (jars) are related to Scala/Java, not Python. Option B (CRAN) is for R packages, and npm (if present as an option) is for JavaScript. Therefore, the correct answer is C.
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