Step 1: Recall the kernel of a circular section.
The kernel (core) is the region within which the line of action of a compressive load must lie so that the entire section remains in compression.
Step 2: State the kernel diameter.
For a circular section,
\[
\boxed{\text{Radius of kernel}=\frac{d}{8}}
\]
Therefore,
\[
\boxed{\text{Diameter of kernel}
=
2\left(\frac{d}{8}\right)
=
\frac{d}{4}.}
\]
Hence,
\[
\boxed{(C)}
\]
is the correct answer.