Step 1: Recall the concept of gravity loss.
During powered flight,
\[
\boxed{
\text{a portion of the engine thrust is continuously used to balance the rocket's weight.}
}
\]
Step 2: Identify the reason for gravity loss.
Since part of the thrust is spent overcoming gravity rather than increasing velocity,
\[
\boxed{
\text{the rocket experiences gravity loss.}
}
\]
Therefore,
\[
\boxed{\text{Part of thrust is used to overcome weight}}
\]
is the correct answer.
Thus,
\[
\boxed{(C)}
\]
is the correct answer.