Is easy to see that, for any compact space, the metric space $C(X)$ with the distance that you defined above is actually a normed vector space for the norm $\|f\|_\infty=\max_x f(x)$ (the uniform norm). So we need to translate the fact that the unity sphere in this space is compact in terms of the topological space $X$.
- Suppose $X=\{x_1,...x_n\}$ is finite.
If $X$ is Hausdorff then this set is discrete and so $C(X)$ is the vector space of all real functions from $\{x_1,...x_n\}$ to $\mathbb{R}$. This normed vector space is isometric to $\mathbb{R}^n$ with the $\|\cdot\|_\infty$ norm and so its unit sphere is compact.
If $X$ is not Hausdorff then $C(X)$ is just a vector subspace of the vector space of all functions on $\{x_1,...,x_n\}$ above and so the unit sphere is the intersection of the unit sphere above (compact) with this vector subspace (closed) and hence is compact as well.
- Now suppose the unit sphere of $C(X)$ is compact.
This is equivalent to $C(X)$ being of finite dimension. If $X$ is infinite and Hausdorff is not so hard to construct a sequence of points $(x_n)_n\in X$ with only one limit point. Let ${x}$ be this limit point and consider the closed set $F={x_n}\cup \{x\}$.
Now for each element $(a_n)_n$ of $$C_0(\mathbb{N})=\{(a_n)_n\in \mathbb{R}^\mathbb{N} \mid \lim a_n=0\}$$
we can construct an element $f$ of $C(X)$ by letting $f(x_n)=a_n$, $f(x)=0$ and extending by Tietze's theorem. Is not difficult to prove that in this way linearly independent families goes to linearly independent families and so $C(X)$ has infinite dimension.
Now if $X$ is not Hausdorff it is no longer true that $X$ should be finite as you can take $X$ any infinite vector space with the trivial topology or $X=\mathbb{N}$ with the cofinite topology (this example is T1).
But what is true is that its Largest Hausdorff quotient $Y$ should be finite. For this suppose it is not, Then $C(Y)$ is infinite dimensional by the fact above and if $\pi:X\rightarrow Y$ is the natural projection then $\pi^*:C(Y)\rightarrow C(X)$ give you and injection of an infinite dimensional vector space into $C(X)$. Reciprocally if the Largest Hausdorff quotient is finite then $C(X)$ is finite dimensional.