Step 1: Understanding the Concept
A diffuse nervous system, or nerve net, has neurons scattered through the body wall without a brain or a central nerve cord.
Step 2: Where it occurs
It is found in radially symmetrical diploblastic animals: cnidarians such as Hydra, and comb jellies of phylum Ctenophora.
Step 3: Compare the options
Insects, birds and mammals have a centralised nervous system with a brain and a nerve cord.
Final Answer:
Ctenophora also has a diffuse nervous system.
\[ \boxed{\text{(C) }\text{Ctenophora}} \]