Capital Account Convertibility of the Indian Rupee implies

1. The question asks for the definition of Capital Account Convertibility (CAC) of the Indian Rupee. 2. Convertibility refers to the freedom to convert domestic currency into foreign currency and vice versa. 3. Current account convertibility relates to transactions for trade in goods and services, remittances, etc. (related to option B). 4. Capital Account Convertibility specifically refers to the freedom to convert currency for capital transactions, which involves the purchase and sale of financial assets (like stocks, bonds, property) across borders. 5. Option (C) accurately defines CAC: the Indian Rupee can be exchanged for any major currency for the purpose of trading financial assets.