Step 1: Recall the definition of an impulse turbine.
For an impulse turbine,
\[
\boxed{
R=0,
}
\]
where \(R\) is the degree of reaction.
This means there is no pressure drop in the rotor.
Step 2: Determine where the pressure drop occurs.
In an impulse stage,
\[
\boxed{
\text{the entire pressure drop takes place in the stator (nozzle).}
}
\]
The rotor only changes the direction of the flow and extracts kinetic energy.
Therefore,
\[
\boxed{\text{Pressure drop occurs only in the stator}}
\]
is the correct answer.
Thus,
\[
\boxed{(C)}
\]
is the correct answer.