Concept:
Resolution is the capability of a remote sensing sensor to distinguish details in the collected data.
Spectral resolution refers to the ability of a sensor to discriminate between closely spaced wavelength bands.
Step 1: Recall different types of resolution.
• Spatial resolution $\rightarrow$ Smallest object that can be detected.
• Spectral resolution $\rightarrow$ Ability to distinguish different wavelengths.
• Radiometric resolution $\rightarrow$ Ability to distinguish slight differences in energy.
• Temporal resolution $\rightarrow$ Frequency of revisiting the same area.
Step 2: Identify the required resolution.
Since the question concerns distinguishing different wavelengths,
\[
\boxed{\text{Spectral Resolution}}
\]
is the correct answer.
Therefore, the correct option is
\[
\boxed{(C)\;\text{Spectral resolution}.}
\]