From the error you are getting:
[wsgi:error] [pid 4448:tid 1040] [client ::1:54402] Target WSGI script not found or unable to stat: C:/wsgi_app/wsgi_app.py
It is highly likely that you have no file with the name "wsgi_app.py" in the "C:/wsgi_app/" directory.
Now what does the Options Multiviews do?
Here is a quote from Apache 2.4 documentation:
The effect of MultiViews is as follows: if the server receives a request for /some/dir/foo, if /some/dir has MultiViews enabled, and /some/dir/foo does not exist, then the server reads the directory looking for files named foo.*, and effectively fakes up a type map which names all those files, assigning them the same media types and content-encodings it would have if the client had asked for one of them by name. It then chooses the best match to the client's requirements.
As you can see from the above explanation, when Multiviews option is enabled, and since a file named wsgi_app.py doesn't exist, the server will try to look for files named wsgi_app.py.*.
I suspect you have a file named wsgi_app.py.txt in the directory, and it's content get's displayed. You have probably created a text file in windows to create the wsgi_app.py file. If inIn Windows when folder option "hide known file type extensions" is enabled, then it will hide the .txt.txt extension of a file type and. As a result, a file named wsgi_app.py.txt will just be shown as wsgi_app.py.
When there is no Multiviews option anymore, the server is looking for a file exactly named "wsgi_app.py", and returning the error, being unable to find it.