Concept:
For an LTI system,
\[
y(n)=x(n)*h(n).
\]
When the input is a unit step sequence, the output is the step response.
\[
y(n)=\sum_{k=0}^{n}a^k.
\]
Step 1: Perform convolution.
\[
y(n)=\sum_{k=0}^{n}a^k.
\]
This is a finite geometric progression.
\[
y(n)=\frac{1-a^{n+1}}{1-a}.
\]
Step 2: Evaluate the steady-state value.
Since
\[
|a|<1,
\]
\[
\lim_{n\to\infty}a^{n+1}=0.
\]
Therefore,
\[
y(\infty)=\frac{1}{1-a}.
\]
The expression corresponding to the step response is
\[
\boxed{\frac{1-a^{n+1}}{1-a}}
\]
Hence option (C) is the intended answer.