Explanation: When the current sine wave reaches its peak value before the voltage wave, it signifies that the current is *leading* the voltage. This phase relationship is characteristic of a predominantly capacitive circuit. A **leading power factor** occurs when the current leads the voltage. This happens because in a capacitive circuit, current must flow to charge the capacitor before a significant voltage can build across it. Conversely, a **lagging power factor** (option B) describes a situation where the current lags the voltage (or voltage leads current), which is typical of inductive circuits. If current and voltage reach their peaks simultaneously, they are said to be **in phase** (option C), characteristic of purely resistive circuits. Therefore, based on the definition of current peaking before voltage, a leading power factor is indicated.