Step 1: Understanding the Concept
Yeast ferments cereals and fruit juices to produce alcohol. Some drinks are used directly and others are distilled.
Step 2: Without distillation
Wine and beer are taken from the fermented liquid directly, so they are not distilled.
Step 3: With distillation
Whisky, brandy and rum are produced by distilling the fermented broth, so distillation is involved in whisky and rum.
Final Answer:
Distillation is involved in the production of whisky and rum.
\[ \boxed{\text{(C) }\text{Production of Whiskey and rum}} \]