In the event of an HDD failure, the affected virtual machines (VMs) will not continue to function normally without impact, as suggested by option C. Instead, a High Availability (HA) event will be triggered to ensure the continuity and stability of the VMs. This HA event will result in the affected VMs restarting on another node that contains the replica data to maintain data integrity and operational continuity. Therefore, the correct answer is that an HA event will occur, causing the affected VMs to restart on a node that contains the replica data.