Groucho, Harpo, Chico and Zeppo Marx are brothers who are US citizens. Groucho, Harpo and Chico each own 15% of the stock of Duck Soup Limited, a Fredonia (foreign) corporation. Zeppo owns 7% and unrelated Fredonians hold the remaining shares. Which of the following is most correct as to Duck Soup's status as a controlled foreign corporation under Sections 957 and 958?

(a) Duck soup is a CFC because U.S. persons own more than 50% of the vote and value of the corporation

(b) Duck soup is a CFC because US shareholders own more than 50% of the vote or value of the corporation.

(c) Duck soup is not a CFC because US shareholders do not own more than 50% of the vote or value of the corporation

(d) Duck soup is not a CFC because Fredonia does not have diplomatic relations with the US