Step 1: Understanding the Concept:
An amphoteric oxide reacts with both acids and bases to give salt and water.
Step 2: Evidence:
With acid: \(\text{Al}_2\text{O}_3 + 6\text{HCl} \to 2\text{AlCl}_3 + 3\text{H}_2\text{O}\).
With base: \(\text{Al}_2\text{O}_3 + 2\text{NaOH} + 3\text{H}_2\text{O} \to 2\text{Na}[\text{Al(OH)}_4]\).
Since it behaves as a base in the first reaction and as an acid in the second, it is amphoteric.
Step 3: Other options:
It is not purely acidic or basic because it reacts both ways, and it is not neutral because it does react with acids and bases (unlike \(\text{CO}\) or \(\text{N}_2\text{O}\)).
Final Answer:
\(\text{Al}_2\text{O}_3\) is amphoteric, option (C).
\[ \boxed{\text{Amphoteric}} \]