Step 1: Concept
The molar specific heat at constant volume is $C_v = \frac{f}{2}R$, where $f$ is the degrees of freedom.
Step 2: Meaning
A "non-rigid" diatomic molecule has 3 translational, 2 rotational, and 2 vibrational degrees of freedom.
Step 3: Analysis
Total $f = 3 + 2 + 2 = 7$. Therefore, $C_v = \frac{7}{2}R$.
Step 4: Conclusion
Hence, the specific heat capacity is $\frac{7}{2}R$.
Final Answer: (B)