Step 1: Concept
Alloys like brass are formed when atoms of one metal replace atoms of another metal in the crystal lattice.
Step 2: Application
Brass is an alloy of Copper ($\text{Cu}$) and Zinc ($\text{Zn}$). In its structure, Zinc atoms substitute some of the Copper atoms in the lattice positions.
Step 3: Conclusion
Since host atoms are replaced by impurity atoms, it is a substitutional impurity defect.
Final Answer: (C)