Step 1: Concept
In Amplitude Modulation (AM), when a carrier wave of frequency $f_{c}$ is modulated by a signal of frequency $f_{m}$, sidebands are created.
Step 2: Meaning
The modulation process produces two prominent sideband frequencies: the Upper Sideband ($\text{USB} = f_{c} + f_{m}$) and the Lower Sideband ($\text{LSB} = f_{c} - f_{m}$).
Step 3: Analysis
The bandwidth (BW) of a modulated signal is defined as the difference between the maximum and minimum frequencies contained within the wave:
$$\text{BW} = \text{USB} - \text{LSB} = (f_{c} + f_{m}) - (f_{c} - f_{m}) = 2f_{m}$$
Step 4: Conclusion
Therefore, the bandwidth of the amplitude modulated wave is exactly twice the modulating frequency ($2f_{m}$).
Final Answer: (C)