Step 1: Counting the letter 'T'.
The task is to count the number of capital letter 'T' in the given image. To solve this, carefully scan the image for each occurrence of the letter 'T'.
Step 2: Analyzing the options.
By counting the capital 'T' letters in the image, we find that there are exactly 16 occurrences of the letter 'T'.
Step 3: Conclusion.
The correct answer is (C) because there are 16 instances of the letter 'T' in the image.