Concept:
A Digital Number (DN) is the integer value assigned to the electromagnetic energy detected by a sensor after analog-to-digital conversion.
It has no physical units and must be calibrated to obtain radiance or reflectance.
Step 1: Understand DN values.
DN values are stored as integers such as
\[
0\text{--}255,\quad 0\text{--}1023,\quad 0\text{--}4095
\]
depending on the sensor's bit depth.
Step 2: Identify the correct definition.
Hence,
\[
\boxed{\text{DN is a quantized digital value without physical units}.}
\]
Therefore, the correct option is
\[
\boxed{(C).}
\]