Given equation of circle is x² + y² + λx + (1 - λ)y + 5 = 0.

We know that for a circle x² + y² + 2ax + 2by + c = 0

⇒ Centre = (- a, - b)

⇒ Radius =

We need to find the values of ‘a’ such that the radius of the given circle does not exceed 5.

We know that the radius of a circle cannot be less than 0.

Let ‘r’ be the radius of the given circle.

⇒ 0≤r≤5

⇒

⇒

⇒ 0≤2λ² - 2λ - 19≤100

By trial and error method we get the set of values of ‘λ’ as [ - 7.2, 8.2].

The integral values of ‘λ’ are - 7, - 6, - 5, - 4, - 3, - 2, - 1,0,1,2,3,4,5 ,6,7,8.

The no. of values of values of ‘λ’ is 16.

∴The correct option is (c)