Step 1: Understanding the Question:
The question asks us to identify the school of legal thought that is divided into two groups: "rule skeptics" and "fact skeptics."
Step 2: Key Concepts and Approach:
This classification was introduced by the American Legal Realist Jerome Frank.
We need to explain what these two types of skepticism entail and how they fit under the umbrella of Legal Realism.
Step 3: Detailed Explanation:
• Classification by Jerome Frank: In his writings, Jerome Frank divided American Realists into two categories based on their primary target of skepticism.
• Rule Skeptics: This group (including Karl Llewellyn) is skeptical of the idea that formal legal rules actually dictate court decisions. They focus primarily on appellate courts and try to find the real, informal rules that guide judicial behavior.
• Fact Skeptics: This group (including Jerome Frank himself) is skeptical of the trial court's ability to find objective facts. They argue that witness testimonies, prejudices, and the fallibility of juries make the establishment of facts highly subjective and unpredictable.
• Common Core: Both groups share the core realist belief that the traditional, formalist view of legal decision-making is inaccurate.
Step 4: Final Answer:
Both rule skeptics and fact skeptics belong to the Realist school of thought. Hence, Option C is the correct choice.