Concept:
The National Education Policy (NEP) 2020 aims to transform India's education system by making learning holistic, multidisciplinary, flexible and student-centred. One of its major goals is to remove rigid divisions between different streams of education.
• Focuses on conceptual learning instead of rote memorisation.
• Encourages multilingual education.
• Promotes flexibility in choosing subjects.
• Recognises the individual abilities of every learner.
Step 1: Understand the objectives of NEP 2020.
The policy emphasizes:
\[
\boxed{\text{Holistic and multidisciplinary education}}
\]
Students are encouraged to choose subjects from different streams according to their interests.
Step 2: Analyse each option.
• Conceptual understanding instead of rote learning -- Fundamental principle.
• Promotion of multilingualism -- Fundamental principle.
• Rigid separation between arts, science and vocational streams -- Contrary to NEP 2020.
• Recognising every student's unique capabilities -- Fundamental principle.
Step 3: Why Option (C) is incorrect?
NEP 2020 specifically recommends:
\[
\boxed{\text{Removing rigid boundaries between Arts, Science and Vocational Education.}}
\]
Students are free to study combinations such as Physics with Music or Mathematics with Fine Arts.
Step 4: Final conclusion.
Hence, the statement that is not a fundamental principle of NEP 2020 is:
\[
\boxed{\text{Implementing a rigid separation between arts, science and vocational streams.}}
\]