Step 1: Recall the meaning of PSW.
In a microprocessor, PSW stands for
\[
\boxed{\text{Program Status Word}.}
\]
It contains the flag register and status information of the processor.
Step 2: Choose the correct option.
Hence,
\[
\boxed{\text{Program Status Word}}
\]
is the correct answer.
Therefore,
\[
\boxed{(C)}
\]
is the correct answer.
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