We are given the equation that describes the shear stress \( \tau \) in relation to the shear rate \( \dot{\gamma} \) and time:
\[
\tau + \frac{\mu_0}{\alpha} \frac{d\tau}{dt} = \mu_0 \dot{\gamma}
\]
At the moment when the rotation of the drill pipe stops at time \( t = 0 \), the shear rate \( \dot{\gamma} \) becomes zero, and the equation reduces to:
\[
\tau + \frac{\mu_0}{\alpha} \frac{d\tau}{dt} = 0
\]
This is a first-order linear differential equation. Solving it, we find the relaxation behavior of the shear stress \( \tau \) with respect to time \( t \). The solution to this equation is of the form:
\[
\tau(t) = \tau_0 e^{-\frac{t}{\mu_0}}
\]
Therefore, the relaxation behavior of the fluid stress is:
\[
\tau \propto e^{-\frac{t}{\mu_0}}
\]
Thus, the correct answer is (C).