Correct option is C
When a body is subjected to mutually perpendicular shear stresses, the diagonal planes (planes inclined at 45 degrees to the principal planes of shear) experience normal stresses. These diagonal planes will have both tension and compression stresses due to the shear stress acting on the body. This is a result of the transformation of stresses where the shear stresses are converted into normal stresses on the inclined planes.
Tension only: Incorrect, as both tension and compression can occur.
Compression only: Incorrect, as both tension and compression can occur.
Tension and Compression: Correct, as both normal tensile and compressive stresses can be present on the diagonal planes.
No tension or compression: Incorrect, as normal stresses will be present on the diagonal planes.
Therefore, the correct answer is (c) Tension and Compression.