Correct option is C
Article 262: This Article empowers the Parliament to make laws for the adjudication of disputes related to the waters of inter-State rivers or river valleys. Under this Article, the Parliament has enacted the Inter-State River Water Disputes Act, 1956, which provides a legal framework for resolving disputes between states over water sharing.
Article 260: This Article deals with the jurisdiction of the Union concerning territories outside India. It provides for the Union Government to enter into agreements with foreign countries for administrative matters. However, it is not related to inter-state water disputes.
Article 261: This Article stipulates that full faith and credit shall be given throughout the territory of India to public acts, records, and judicial proceedings of the Union and of every State. It is related to the legal recognition of various public acts, records, and judicial proceedings but does not pertain to water disputes.
Article 263: This Article provides for the establishment of an Inter-State Council to inquire into and advise upon disputes between states, discuss subjects of common interest, and coordinate policy and action between the states. While it facilitates cooperation between states, it does not specifically deal with water disputes.