Concept:
For a face-centered cubic (fcc) unit cell, the packing efficiency is:
\[
74% = \frac{74}{100} = 0.74
\]
This means \(74%\) of the total unit cell volume is occupied by particles.
Step 1: Write the given unit cell volume.
\[
V_{\text{cell}} = 1.6 \times 10^{-23}\ \text{cm}^3
\]
Step 2: Use packing efficiency of fcc.
\[
V_{\text{occupied}} = 0.74 \times V_{\text{cell}}
\]
\[
V_{\text{occupied}} = 0.74 \times 1.6 \times 10^{-23}
\]
Step 3: Calculate the value.
\[
V_{\text{occupied}} = 1.184 \times 10^{-23}\ \text{cm}^3
\]
Hence, the correct answer is:
\[
\boxed{(C)\ 1.184 \times 10^{-23}\ \text{cm}^3}
\]