Step 1: Concept Relative permeability ($\mu_r$) and magnetic susceptibility ($\chi$) are related by the formula $\mu_r = 1 + \chi$.
Step 2: Meaning Susceptibility measures how easily a material is magnetized, while permeability measures how easily magnetic lines pass through it.
Step 3: Analysis Given $\chi = 5499$.
$\mu_r = 1 + 5499 = 5500$.
Step 4: Conclusion The relative permeability of iron is 5500.
Final Answer: (C)