Step 1: Understanding the Concept
Eddy currents are closed loops of induced current produced in a bulk conductor by a changing magnetic flux.
Step 2: Check each statement
Their direction comes from Lenz's law, not a left-hand rule. They usually waste energy as heat and reduce efficiency. They occur in any conductor, including iron and aluminium.
Step 3: Find the true one
The loops lie in planes perpendicular to the inducing magnetic field, so the third statement is correct.
Final Answer:
Eddy currents circulate in planes perpendicular to the inducing magnetic field.
\[ \boxed{\text{(C) }\text{Eddy currents circulate in planes perpendicular to the magnetic field that induces them}} \]