Correct option is C
Given: TWY, RUW, PSU, NQS, ?

Logic: Letters are decreasing - 2 place.
T - 2 = R, R - 2 = P, P - 2 = N, N - 2 = L
W - 2 = U, U - 2 = S, S - 2 = Q, Q - 2 = O
Y - 2 = W, W - 2 = U, U - 2 = S, S - 2 = Q
So, the missing term is LOQ.
Thus, correct option is (c).