Step 1: Concept
Diffraction is the bending of waves around the corners of an obstacle or aperture.
Step 2: Meaning
For the bending to be noticeable, the size of the opening ($d$) must relate to the wavelength ($\lambda$).
Step 3: Analysis
If $d \gg \lambda$, light travels in straight lines; if $d$ is very small, intensity is too low.
Step 4: Conclusion
Diffraction effects are most prominent when $d \approx \lambda$.
Final Answer: (C)