Step 1: Understanding 'Kadambari.'
'Kadambari' is a classical Sanskrit novel written by Banabhatta. It is a story of love, tragedy, and philosophical musings, and is considered one of the earliest works of prose fiction in Indian literature. Banabhatta is also known for his other works like 'Harshacharita,' a biography of King Harsha.
Step 2: Analyzing the options.
(A) Kalidasa: Kalidasa was a renowned playwright and poet, but he did not write 'Kadambari.' He is best known for works like 'Abhijnanasakuntalam.'
(B) Kautilya: Kautilya, also known as Chanakya, was a political strategist and author of 'Arthashastra,' not 'Kadambari.'
(C) Banabhatta: Correct. Banabhatta is the author of 'Kadambari,' which is one of the first novels in Sanskrit literature.
(D) Asvagosa: Asvagosa was a Buddhist scholar and poet, but he is not the author of 'Kadambari.'
Step 3: Conclusion.
The correct answer is (C) Banabhatta, as he is the author of 'Kadambari.'