Step 1: Concept
Power $P = \frac{mgh}{t}$.
Step 2: Analysis
$P = 2000 \text{ W}, t = 60 \text{ s}, g = 10 \text{ m/s}^{2}, h = 10 \text{ m}$.
$2000 = \frac{m \times 10 \times 10}{60} \Rightarrow m = \frac{2000 \times 60}{100}$.
Step 3: Conclusion
$m = 1200 \text{ kg}$. Since 1 kg of water $\approx$ 1 liter, the amount is 1200 liters.
Final Answer: (C)