Step 1: Understanding the Concept
A benzylic halide has the halogen on a carbon directly attached to a benzene ring, for example \(\text{C}_6\text{H}_5\text{CH}_2\text{Cl}\).
Step 2: Detailed Explanation
The carbon bearing Cl has four single bonds (two H, one ring carbon, one Cl). Four sigma bonds mean \(sp^3\) hybridisation.
An \(sp^2\) carbon bearing the halogen would be an aryl or vinyl halide, which is a different class.
Final Answer:
The halogen is on an \(sp^3\) carbon, option (C).
\[ \boxed{sp^3} \]