Step 1: A circular queue uses an array of indices \(0\) to \(M-1\). When the rear reaches the last slot, it must wrap back to the start instead of running off the end.
Step 2: Plain \(rear = rear + 1\) keeps growing past \(M-1\) and causes an out-of-range index, so it is wrong for a circular queue.
Step 3: The wrap is achieved with the modulo operator. Taking \((rear + 1)\,\%\,M\) advances by one, and when the value hits \(M\) it folds to \(0\).
Step 4: Check the boundary. If \(rear = M-1\), then \((M-1+1)\,\%\,M = M\,\%\,M = 0\), which correctly returns to the first slot.
Step 5: The correct increment is \((rear + 1)\,\%\,M\). The correct option is (C).