Step 1: Understand the question:
The question asks for a record-keeping method that uses the Internet and a computer.
So the records are not kept in paper form.
Step 2: Check each option:
Option (A), microfilming, reduces documents to tiny photographs on film. It needs a film and a reader, not the Internet. So (A) is wrong.
Option (B), indexing, is a way of finding files quickly. It is not a method of storing records. So (B) is wrong.
Option (C), electronic filing, stores records as digital files in a computer or on the Internet cloud. So (C) is right.
Option (D), vertical filing, keeps paper files upright in drawers. It is a physical method. So (D) is wrong.
Final Answer:
Electronic filing stores records digitally on a computer or the Internet. This is option (C).