Step 1: Determine the time difference.
The third stone is released
\[
2\times 0.5=1~\text{s}
\]
after the first stone.
Step 2: Write the velocities.
If the first stone has been falling for \(t\) seconds,
\[
v_1=gt
\]
The third stone has been falling for
\[
(t-1)\ \text{s},
\]
so
\[
v_3=g(t-1).
\]
Step 3: Find the relative velocity.
\[
v_{\text{rel}}
=v_1-v_3
=gt-g(t-1)
=g
=10~\text{m s}^{-1}.
\]
Hence,
\[
\boxed{v_{\text{rel}}=10~\text{m s}^{-1}}
\]
Therefore,
\[
\boxed{(C)}
\]
is the correct answer.