Concept:
A matrix is diagonalizable if the total number of linearly independent eigenvectors is equal to the order of the matrix.
Here \(P\) is a \(3\times 3\) upper triangular matrix.
For an upper triangular matrix, eigenvalues are the diagonal entries.
Step 1: Find eigenvalues of \(P\).
The diagonal entries of \(P\) are:
\[
1,\ 2,\ 1
\]
So the eigenvalues are:
\[
\lambda=1,\ 1,\ 2
\]
Thus:
\[
\lambda=1
\]
has algebraic multiplicity \(2\), and
\[
\lambda=2
\]
has algebraic multiplicity \(1\).
Step 2: Condition for diagonalizability.
Since \(\lambda=2\) has multiplicity \(1\), it will give one eigenvector.
For diagonalizability, eigenvalue \(\lambda=1\) must give two linearly independent eigenvectors.
So we need:
\[
\dim E_1=2
\]
where \(E_1\) is the eigenspace corresponding to \(\lambda=1\).
Step 3: Find eigenspace for \(\lambda=1\).
We solve:
\[
(P-I)X=0
\]
Now:
\[
P-I=
\begin{pmatrix}
1 & a & b\\
0 & 2 & c\\
0 & 0 & 1
\end{pmatrix}
-
\begin{pmatrix}
1 & 0 & 0\\
0 & 1 & 0\\
0 & 0 & 1
\end{pmatrix}
\]
\[
P-I=
\begin{pmatrix}
0 & a & b\\
0 & 1 & c\\
0 & 0 & 0
\end{pmatrix}
\]
Let:
\[
X=
\begin{pmatrix}
x
y
z
\end{pmatrix}
\]
Then:
\[
(P-I)X=0
\]
gives:
\[
ay+bz=0
\]
and:
\[
y+cz=0
\]
Step 4: Solve the equations.
From:
\[
y+cz=0
\]
we get:
\[
y=-cz
\]
Substitute this in:
\[
ay+bz=0
\]
\[
a(-cz)+bz=0
\]
\[
-acz+bz=0
\]
\[
(b-ac)z=0
\]
Step 5: Need two independent eigenvectors.
The variable \(x\) is already free.
For the eigenspace corresponding to \(\lambda=1\) to have dimension \(2\), \(z\) must also be free.
So we need:
\[
b-ac=0
\]
\[
b=ac
\]
Step 6: Final conclusion.
Therefore, \(P\) is diagonalizable iff:
\[
b=ac
\]
\[
\therefore \text{Correct Answer is (B)}
\]