Concept:
Fiducial marks are fixed reference marks placed at the edges of an aerial photograph by the camera.
They are used to establish the internal coordinate system of the photograph and accurately determine the principal point.
Step 1: Understand the purpose of fiducial marks.
They help in
• Establishing the photo coordinate system.
• Locating the principal point.
• Performing photogrammetric measurements.
Step 2: Identify the correct option.
Thus,
\[
\boxed{\text{Fiducial marks establish a reference coordinate system on the photograph}.}
\]
Therefore, the correct option is
\[
\boxed{(C).}
\]