The efficiency of a Carnot engine is given by the formula: \[ \eta = 1 - \frac{T_c}{T_h} \] where \( T_h \) is the temperature of the hot reservoir and \( T_c \) is the temperature of the cold reservoir (both in Kelvin). Therefore, the efficiency depends on both the temperature of the hot reservoir and the cold reservoir. The greater the difference between \( T_h \) and \( T_c \), the higher the efficiency. Thus, the correct answer is: \[ \boxed{(C) \, \text{Both A and B}} \]