Step 1: Understanding the Concept
Dihydroxybenzenes are named benzenediols, with locants showing the positions of the two OH groups.
Step 2: Identify the isomers
Catechol is the 1,2-isomer, resorcinol is the 1,3-isomer, and hydroquinone is the 1,4-isomer.
Step 3: Compare the options
Hydroquinone has the OH groups para to each other, so the name is benzene-1,4-diol, the third option.
Final Answer:
Hydroquinone is benzene-1,4-diol.
\[ \boxed{\text{(C) }\text{Benzene-1,4-diol}} \]