Step 1: Recall the Prandtl--Meyer expansion.
When a supersonic flow passes around a convex corner,
\[
\boxed{
\text{a Prandtl--Meyer expansion fan is formed.}
}
\]
The expansion process is continuous and isentropic.
Step 2: Determine the effect on stagnation pressure.
For an isentropic process,
\[
\boxed{
\text{Stagnation pressure remains constant.}
}
\]
Although the static pressure decreases and the Mach number increases,
\[
P_0
\]
does not change.
Therefore,
\[
\boxed{\text{It remains constant because the process is isentropic}}
\]
is the correct answer.
Thus,
\[
\boxed{(C)}
\]
is the correct answer.