Step 1: Understanding the Concept:
Benzyl alcohol is \(\text{C}_6\text{H}_5\text{-CH}_2\text{-OH}\). The carbon carrying OH is the \(\text{CH}_2\) carbon, not a ring carbon.
Step 2: Count bonds:
This carbon forms four sigma bonds (with the ring carbon, two hydrogens and oxygen) and no pi bonds. Four sigma bonds mean \(sp^3\) hybridisation.
Step 3: Other options:
The ring carbons are \(sp^2\), which might tempt one to choose B, but the question asks about the carbon attached to OH. \(sp\) is for triple bonds, and \(dsp^2\) is for square planar metal complexes.
Final Answer:
The carbon is \(sp^3\) hybridised, option (C).
\[ \boxed{sp^3} \]