Which type of demonstration includes interactive activities to engage the audience?

The correct answer is the type of demonstration that specifically focuses on engaging the audience through interactive activities. This approach fosters participation and collaboration, allowing audience members not only to observe but also to actively engage with the content being presented. Interactive type demonstrations often include hands-on activities, discussions, or Q&A sessions that enable participants to apply what they're learning in real-time, enhancing understanding and retention of information.

While display demonstrations primarily aim to show something visibly without much audience involvement, field demonstrations usually take place in a specific environment but may not emphasize interaction. Skit demonstrations, though entertaining and informative, are typically scripted performances that may not allow for audience interaction in the same immersive way that interactive type demonstrations do. Therefore, the focus on active engagement in C makes it the most appropriate choice for this question.