Step 1: Understanding the Concept
The genetic code has 64 codons. Sixty-one code for amino acids and three act as stop signals.
Step 2: Stop codons
The three termination (nonsense) codons are UAA, UAG and UGA.
Step 3: Compare the options
AUG is the start codon for methionine, and UGU and UUA code for cysteine and leucine. UAG is a termination codon.
Final Answer:
UAG is a termination codon.
\[ \boxed{\text{(C) }\text{UAG}} \]