Step 1: Concept
In Fraunhofer diffraction, the width of the central maximum (distance between first minima) is $W = \frac{2\lambda D}{d}$.
Step 2: Meaning
Here, $W = 1 \text{ cm} = 10^{-2} \text{ m}$, $D = 2 \text{ m}$, and $d = 0.2 \text{ mm} = 2 \times 10^{-4} \text{ m}$.
Step 3: Analysis
$\lambda = \frac{W \cdot d}{2D} = \frac{10^{-2} \times 2 \times 10^{-4}}{2 \times 2} = \frac{2 \times 10^{-6}}{4}$.
$\lambda = 0.5 \times 10^{-6} \text{ m} = 5000 \times 10^{-10} \text{ m}$.
Step 4: Conclusion
The wavelength of light is $5000 \text{ \AA}$.
Final Answer: (C)