Step 1: Differentiate the function.
The given function is
\[
f(x)=xe^{x^{2}-2x-3}.
\]
Using the product rule,
\[
f'(x)
=
e^{x^{2}-2x-3}
+
xe^{x^{2}-2x-3}(2x-2).
\]
Taking the common factor,
\[
f'(x)
=
e^{x^{2}-2x-3}
\left[1+2x(x-1)\right].
\]
Hence,
\[
f'(x)
=
e^{x^{2}-2x-3}
(2x^{2}-2x+1).
\]
Step 2: Determine the sign of \(f'(x)\).
Since
\[
e^{x^{2}-2x-3}>0
\]
for every real \(x\), the sign of \(f'(x)\) depends only on
\[
2x^{2}-2x+1.
\]
Now,
\[
2x^{2}-2x+1
=
2\left(x-\frac12\right)^2+\frac12.
\]
Clearly,
\[
2\left(x-\frac12\right)^2+\frac12>0
\]
for every real number \(x\).
Therefore,
\[
f'(x)>0
\]
for all \(x\in\mathbb{R}\).
Step 3: Conclude the monotonicity.
Since
\[
f'(x)>0
\]
throughout its domain,
\[
\boxed{f(x)\text{ is monotonically increasing on }\mathbb{R}.}
\]
Hence, the correct option is \(\boxed{(C)}\).