About 3000 Stars Are Visible to the Unaided Eye on a Clear

About 3000 stars are visible to the unaided eye on a clear night, and the majority of these are giants and supergiants. However, theories predict the most numerous stars should be red dwarfs. Is there an explanation for this discrepancy? If so, what is it?

A) The Sun's location in the galactic plane is particularly rich in gas and dust, so an unusually large number of giants and supergiants formed here.
B) Early in the history of the Milky Way Galaxy, a shock wave passed through the Sun's part of the spiral arm creating a large number of stars all at one time. These stars are now mostly in their giant phases.
C) The bright giants and supergiants are the most likely to be seen, even though they are not in the majority numerically.
D) The explanation for this discrepancy is not well understood.