IMHO: This kind of vaguely stated multiple-choice question, depends heavily on reading
the definitions, examples, and guidelines in the material presented just prior to
the question. You may find specificity there that is lacking in the question itself.
Continuous data. In defense of the purported 'correct' answer: In practice, it is generally true that histograms are used for continuous data. The histogram bins are chosen in order to make an attractive and useful histogram. Often the goal is for the shape of the histogram to suggest the
shape of the population density.
Suppose you have a sample of size $n=200$ from the continuous distribution
$\mathsf{Norm}(\mu = 50, \sigma = 7).$ Then here are some possible histograms:
set.seed(1213)
x = rnorm(200, 50, 7)
summary(x)
Min. 1st Qu. Median Mean 3rd Qu. Max.
31.61 45.46 50.83 50.28 55.45 72.58
The histogram at upper-left uses the 'default' binning, according to an
algorithm in R; for the second, I used the br parameter (for 'breaks') to
request fewer bins; for the two at the bottom, I specified precisely the
breaks I wanted to use. Tick marks along the horizontal axis (made by rug), show exact data
values--to the extent allowed by the graphics available. All four histograms show the population normal
density function as a red curve.
Usually, $n=200$ observations is not quite enough to get a really good imitation of the density function. However, in this example, R's default seems to work best.

R code for figure above:
par(mfrow=c(2,2))
hist(x, prob=T, col="skyblue2"); rug(x)
curve(dnorm(x, 50,7), add=T, col="red")
hist(x, prob=T, br=5, ylim=c(0,.06), col="skyblue2"); rug(x)
curve(dnorm(x, 50,7), add=T, col="red")
hist(x, prob=T, br=seq(30,75,by=4), col="skyblue2"); rug(x)
curve(dnorm(x, 50,7), add=T, col="red")
hist(x, prob=T, br=seq(30,75,by=2), col="skyblue2"); rug(x)
curve(dnorm(x, 50,7), add=T, col="red")
par(mfrow=c(2,2))
More general use of histograms. By contrast, many statisticians will be surprised to be told that discrete
or categorical data should never be shown in histograms. [Often 'bar charts' are used for categorical data, but histograms are often used for discrete data (especially, when there are many possible values), and for ordinal categorical data.]
Suppose that the sample y consists of $n = 100$ Likert-7 scores, and
sample z consists of $n = 500$ realizations of $\mathsf{Binom}(n=100, p = 1/3).$
set.seed(2020)
y = sample(1:7, 100, rep=T, p=c(1,2,3,4,3,2,1)/16)
table(y)
y
1 2 3 4 5 6 7
7 10 24 26 18 10 5
z = rbinom(500, 100, .4)
summary(z)
Min. 1st Qu. Median Mean 3rd Qu. Max.
25.00 36.00 40.00 39.73 43.00 55.00
The histogram in the left-hand panel uses a 'Frequency' vertical scale. In the right-hand panel red dots show exact binomial probabilities (two per bin).
In a 'density' histogram (density on the vertical axis, using parameter prob=T) the total area of all histogram bars is $1.$ This is not necessarily true for a 'frequency' histogram (frequency on the vertical scale, and potentially frequency counts labelling each bar).

R code for second figure:
par(mfrow=c(1,2))
hist(y, label=T, br=(0:7)+.5, ylim=c(0,35), col="skyblue2")
k = 0:100; pdf=dbinom(k,100,.4)
hist(z, prob=T, br = seq(-.5,100.5,by=2), col="skyblue2")
points(k, pdf, pch=20, col="red")
par(mfrow=c(1,2))