Step 1: Understanding the Concept
In IUPAC naming, the principal functional group (-OH) gets the suffix 'ol' and the lowest locant. Other groups are prefixes.
Step 2: Parent chain
The ring has four carbons, so the parent is cyclobutane, giving cyclobutanol.
Step 3: Numbering
The ring carbon with -OH is C-1. The methyl group is on the adjacent ring carbon, which is C-2.
Step 4: Name
The compound is 2-methylcyclobutan-1-ol, written as 2-methylcyclobutanol.
Final Answer:
The IUPAC name is 2-methylcyclobutanol.
\[ \boxed{\text{(C) }\text{2-Methylcyclobutanol}} \]