Step 1: Understanding the structure of carbon dioxide.
The molecular structure of carbon dioxide (CO$_2$) consists of a central carbon atom doubly bonded to two oxygen atoms. Each oxygen atom has two lone pairs of electrons. Thus, there are a total of 4 lone pairs of electrons in CO$_2$.
Step 2: Analyzing the options.
(A) 2: This is incorrect, as each oxygen atom in CO$_2$ has 2 lone pairs.
(B) 3: This is incorrect, as there are 4 lone pairs in total.
(C) 4: This is the correct answer, as each oxygen atom has 2 lone pairs, making a total of 4 lone pairs in CO$_2$.
(D) 1: This is incorrect, as there are 4 lone pairs in CO$_2$.
Step 3: Conclusion.
The correct answer is (C) 4.