Step 1: Calculate the current in the circuit.
The total resistance is
\[
R_{\text{total}}
=
20+28+2
=
50\,\Omega.
\]
Hence,
\[
I
=
\frac{E}{R_{\text{total}}}
=
\frac{5}{50}
=
0.1\,\text{A}.
\]
Step 2: Find the potential drop across the potentiometer wire.
The potentiometer resistance is
\[
20\,\Omega.
\]
Therefore,
\[
V
=
IR
=
0.1\times20
=
2\,\text{V}.
\]
This is the maximum potential difference measurable by the potentiometer.
Hence,
\[
\boxed{2\,\text{V}}
\]
Therefore,
\[
\boxed{(C)}
\]
is the correct answer.