C

Bernoulli’s principle states that in a steady flow of an incompressible fluid, the sum of the pressure energy, kinetic energy per unit volume, and potential energy per unit volume remains constant along a streamline.
Step 1: Identify the components of Bernoulli’s equation, which are pressure energy (P), kinetic energy density (\frac{1}{2}\rho v^2), and potential energy density (\rho gh).
Step 2: The equation can be written as: $$ P + \frac{1}{2}\rho v^2 + \rho gh = constant $$
Step 3: This principle relies on the conservation of energy as it equates the total mechanical energy along a streamline.
Therefore, the correct answer is based on the conservation of energy.