**Core Concept**
Peripheral chemoreceptors are specialized sensors located in the carotid bodies and aortic bodies that detect changes in the chemical composition of arterial blood, specifically the levels of oxygen, carbon dioxide, and pH. These receptors play a crucial role in maintaining acid-base balance and oxygen homeostasis.

**Why the Correct Answer is Right**
The carotid bodies, located near the bifurcation of the common carotid artery, contain type I cells, also known as glomus cells, which are rich in mitochondria and are responsible for detecting changes in oxygen levels. These cells use a complex mechanism involving the enzyme cytochrome c oxidase to sense hypoxia. When oxygen levels decrease, the enzyme's activity is reduced, leading to an increase in potassium ion (K+) efflux and a decrease in the membrane potential. This depolarization triggers the release of neurotransmitters, such as ATP and acetylcholine, which stimulate the afferent nerve fibers to send signals to the brainstem, leading to an increase in ventilation.

**Why Each Wrong Option is Incorrect**
**Option A:** This option is incorrect because it does not specify the location or function of peripheral chemoreceptors.
**Option B:** This option is incorrect because it only mentions the role of oxygen in peripheral chemoreception, neglecting the other important factors, such as carbon dioxide and pH.
**Option C:** This option is incorrect because it does not accurately describe the mechanism of peripheral chemoreception.

**Clinical Pearl / High-Yield Fact**
Peripheral chemoreceptors are responsible for detecting hypoxia and triggering an increase in ventilation, but they are not responsible for detecting hypercapnia (elevated CO2 levels). This is in contrast to central chemoreceptors, which are sensitive to CO2 levels and play a crucial role in maintaining acid-base balance.

**Correct Answer: C. This option is incorrect because it does not accurately describe the mechanism of peripheral chemoreception.