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,our theories predict the most numerous stars should be red dwarfs.Do we have an explanation for this discrepancy? If so,what is it?

A) Our 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 our Galaxy, a shock wave passed through our 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) This is an example of a selection effect. The bright giants and supergiants are the most likely to be seen, even though they are not in the majority numerically.
D) We do not have an explanation for this discrepancy.