Step 1: Understanding the Concept:
The discovery of viruses as sub-microscopic, filterable infectious agents was a key milestone in microbiology and virology.
Step 2: Detailed Explanation:
Let us identify the historical discoveries of each listed scientist:
- Martinus Beijerinck: Discovered the first plant virus, Tobacco Mosaic Virus (TMV), and coined the term "virus" (contagium vivum fluidum) in 1898.
- Walter Reed: Led the team that confirmed that yellow fever was transmitted by mosquitoes, establishing the first human viral disease.
- Friedrich Loeffler and Paul Frosch: In 1898, they demonstrated that the causative agent of Foot-and-Mouth Disease (FMD) in cattle could pass through a bacterial filter (Chamberland filter) and remained infectious. This was the first discovery of an animal-infecting virus.
- Edward Jenner: Developed the first successful smallpox vaccine using cowpox material.
Therefore, Loeffler and Frosch first observed that FMD is caused by a filterable virus.
Step 3: Final Answer
The correct option is (C).