Serena Is Single

Serena is single. She purchased her principal residence three years ago. She lived in the home until she sold it at a $300,000 gain this year. Serena was allowed to exclude $250,000 of the $300,000 gain. What is the character of the $50,000 gain she was not able to exclude?

A) Ordinary income/gain.
B) Short-term capital gain.
C) Long-term capital gain.
D) Personal gain.
E) None of the choices are correct.