Step 1: The problem is solved if at least one of the two students solves it. It is easiest to work with the complement, that is, the event that neither student solves it. Assume A and B work independently.
Step 2: Probability that A fails: \[P(\bar A) = 1 - \tfrac{1}{2} = \tfrac{1}{2}.\] Probability that B fails: \[P(\bar B) = 1 - \tfrac{2}{3} = \tfrac{1}{3}.\]
Step 3: Since the two events are independent, the probability that both fail is the product: \[P(\bar A \cap \bar B) = \tfrac{1}{2}\cdot \tfrac{1}{3} = \tfrac{1}{6}.\]
Step 4: The problem being solved is the complement of both failing: \[P(\text{solved}) = 1 - \tfrac{1}{6} = \tfrac{5}{6}.\]
Step 5: This matches option (C).
\[\boxed{\tfrac{5}{6}}\]