We know that:
If CPU has a "n\\text{-bit}" program counter then the CPU can address upto "2^n" byte-addressable memory.
Since here the value of "n" is "16" so CPU can address upto "2^{16} \\,\\, \\text{or} \\,\\, 65536" byte-aadressable memory.
Now:
"\\because 1024 \\text{ bytes } = 1 \\text{ KB } \n\\\\"
"\\therefore 65536 \\text{ bytes } = \\dfrac{65536}{1024} \\text{ KB} \n\\\\"
"\\hspace{1 cm} \\hspace{1 cm} \\,\\,\\,\\, \\, = 64 \\, \\text{KB}"
Hence:
If CPU has a "16 \\text{-bit}" program counter then the CPU can address upto "64 \\text{ KB}" memory locations.
So, option"\\color{blue}{\\text{(C)}}" is correct.
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