Step 1: Recall the purpose of Southern blotting.
Southern blotting involves the transfer of DNA fragments from a gel onto a membrane followed by hybridization with a labelled DNA probe.
Step 2: Identify what it detects.
Since complementary probes bind only to matching DNA fragments,
\[
\boxed{\text{Southern blotting detects specific DNA sequences}.}
\]
Therefore,
\[
\boxed{(C)}
\]
is the correct answer.