Correct option is (B) Smaller friction
The reason for small steps is that the lateral forces are decreased. Imagine taking a large step on concrete. When you put your foot down well in front of you, it will be pushing forwards on the concrete. And at the end of that step, when that foot is well behind you, it will be pushing backward on the concrete. The larger the step, the larger there forward and backward forces.
Our shoes on Ice can only provide or sustain small forward/backward forces, before they slip. Hence we try to reduce the friction.