Step 1: Moment of inertia formula.
For a thin uniform rod, the moment of inertia about an axis perpendicular to it and passing through one of its ends is:
\[
I = \frac{1}{3} ML^2
\]
However, the axis of rotation is at a distance \( \frac{L}{3} \) from the end, not the center.
Step 2: Use of parallel axis theorem.
Using the parallel axis theorem, the moment of inertia about an axis a distance \( d \) from the center is:
\[
I = I_{\text{center}} + Md^2
\]
For this case, \( d = \frac{L}{3} \), so:
\[
I = \frac{1}{12} ML^2 + M \left(\frac{L}{3}\right)^2 = \frac{1}{12} ML^2 + \frac{1}{9} ML^2 = \frac{ML^2}{9}
\]
Step 3: Conclusion.
The moment of inertia is \( \frac{ML^2}{9} \), so the correct answer is (C).