Early and frequent feedback is fundamental in Agile methodologies to ensure the product meets customer needs and to identify and resolve issues promptly. However, the statement that early feedback decreases the time needed for system testing (Option C) is misleading. While early feedback helps in identifying and resolving issues at an early stage, it does not necessarily reduce the overall time required for system testing. System testing is a comprehensive phase that assesses the system's compliance with the specified requirements. Agile practices, such as continuous integration and testing, aim to maintain a high quality throughout the development process, but they do not eliminate the need for thorough system testing to validate the product before release.