Step 1: Understanding Dicroidium.
Dicroidium is a genus of plants known from the Late Triassic period, typically found in fossil deposits of the Gondwana supercontinent.
Step 2: Analyzing the options.
(A) Pachmarhi Formation: Incorrect — Dicroidium is not commonly found in this formation.
(B) Raniganj Formation: Incorrect — This formation is associated with different types of fossils.
(C) Panchet Formation: Correct — The Panchet Formation is known for the presence of Dicroidium fossils.
(D) Denwa Formation: Incorrect — Dicroidium is not found in the Denwa Formation.
Step 3: Conclusion.
The correct answer is (C) Panchet Formation, as Dicroidium fossils are commonly found in this formation.