**Core Concept**
Tardive dyskinesia is a side effect of long-term use of typical antipsychotics, characterized by involuntary movements of the face, trunk, or limbs. The primary goal of pharmacotherapy in this case is to manage schizophrenia while minimizing the risk of exacerbating tardive dyskinesia.

**Why the Correct Answer is Right**
Clozapine, a second-generation (atypical) antipsychotic, is often preferred in patients with schizophrenia and tardive dyskinesia. This is because clozapine has a lower risk of causing extrapyramidal side effects (EPS) and tardive dyskinesia compared to typical antipsychotics. Clozapine's mechanism of action involves antagonism of dopamine D2 and serotonin 5-HT2A receptors, which may help alleviate symptoms of schizophrenia with reduced risk of movement disorders.

**Why Each Wrong Option is Incorrect**
* **Option A:** Haloperidol is a typical antipsychotic, which would likely exacerbate tardive dyskinesia.
* **Option B:** Risperidone, another atypical antipsychotic, may still cause EPS and tardive dyskinesia, although to a lesser extent than typical antipsychotics.
* **Option C:** Olanzapine, another atypical antipsychotic, may not be as effective as clozapine in managing schizophrenia and has a higher risk of causing weight gain and metabolic side effects.

**Clinical Pearl / High-Yield Fact**
When managing schizophrenia, it's essential to weigh the benefits of antipsychotic therapy against the risks of EPS and tardive dyskinesia. Clozapine's unique pharmacological profile makes it a valuable option in patients with schizophrenia and a history of tardive dyskinesia.

**Correct Answer: C. Clozapine**