We know that a computer performs its tasks based on the instruction. Now, an instruction has three fields which are mode, opcode and operand or address of the operand. The mode defines how can I get operand. Opcode defines which arithmetic operation the instruction will perform. The last field is operand or address of the operand. If the last field is operand then the instruction will contain operand itself. If the last field is the address of operand then the instruction specifies the location of the operand and this location may be in memory or register.
Now, the register addressing mode is also an instruction. In this instruction, the address field of the operand is the address of CPU register which contains the operand and no memory reference is required. So, we can say that operands are examined in the CPU.
Hence, Option "\\color{blue}{\\text{(C)}}" is correct.
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