Option (C) is the correct answer because the Census of India defines an urban settlement as a place where at least 75% of male workers are engaged in non-agriculture pursuits. Option (C) incorrectly states that the population is engaged in the primary sector (agriculture), which contradicts the actual definition provided in the context. The other options (A, B, and D) correctly reflect the criteria: a density of 400 persons per sq km, the presence of a municipality or corporation, and a population size of more than 5,000 persons.