Concept:
A sliver polygon is an unwanted polygon created during overlay operations when the boundaries of two map layers do not perfectly coincide.
It is considered a topological error in GIS.
Step 1: Understand how sliver polygons are formed.
Suppose two adjacent polygons have slightly different boundaries.
During overlay,
\[
\text{Overlay}
\longrightarrow
\text{Tiny gap}
\longrightarrow
\text{Sliver polygon}
\]
These polygons usually have
• Very small area
• Narrow shape
• No real geographic significance
Step 2: Identify the correct definition.
Hence,
\[
\boxed{\text{Sliver polygons are small unwanted polygons formed due to boundary mismatches.}}
\]
Therefore, the correct option is
\[
\boxed{(C).}
\]