Step 1: Concept
In the Iron-Carbon equilibrium diagram, pearlite is a microconstituent that forms during the slow cooling of austenite.
Step 2: Meaning
It is not a single phase but a two-phased, lamellar (layered) structure.
Step 3: Analysis
When austenite of eutectoid composition (0.76% C) cools below $727^{\circ}\text{C}$, it transforms into alternating layers of $\alpha$-ferrite and cementite ($Fe_{3}C$).
Step 4: Conclusion
This specific combination of Ferrite and Cementite is known as pearlite.
Final Answer: (C)