Step 1: Continuity Equation
For streamline flow, the rate of flow is governed by $A_1v_1 = A_2v_2$.
Step 2: Inverse Relationship
The velocity ($v$) is inversely proportional to the cross-sectional area ($A$).
Step 3: Conclusion
Since point N has a smaller radius (0.05 m) than M (0.1 m), the cross-sectional area is smaller at N, and thus the rate of velocity (speed) is greater at N.
Final Answer: (c)