The ALU (Arithmetic Logic Unit) is a fundamental component of a computer's CPU (Central Processing Unit). It is responsible for performing the arithmetic and logical operations required by the computer's instructions. The ALU can perform both arithmetic and logical operations, making option C (Both Arithmetic and Logical operations) the correct answer.

1. Arithmetic Operations:
- The ALU can perform various arithmetic operations such as addition, subtraction, multiplication, and division.
- These operations involve manipulating numerical data, such as integers and floating-point numbers.
- The ALU uses circuits and logic gates to perform these calculations, combining binary inputs and producing binary outputs.

2. Logic Operations:
- The ALU is also designed to perform logical operations, which involve evaluating the truth value of logical expressions.
- Common logical operations include AND, OR, NOT, and XOR.
- These operations are used in Boolean algebra and are essential for decision making and data manipulation.
- The ALU uses logic gates, such as AND gates, OR gates, and NOT gates, to perform these operations.

3. Both Arithmetic and Logical Operations:
- The ALU is capable of performing both arithmetic and logical operations.
- This versatility allows the ALU to handle a wide range of tasks required by computer programs.
- For example, the ALU can add two numbers, compare two numbers for equality, or perform bitwise operations on binary data.

4. Storage of Data:
- While the ALU is responsible for performing calculations and logical operations, it does not directly store data.
- The ALU relies on other components, such as registers and memory, to store data temporarily or permanently.
- Registers are small storage areas within the CPU that hold data during processing, and memory provides larger storage capacity for both data and instructions.

In conclusion, the ALU of a computer performs both arithmetic and logical operations, making option C the correct answer. The ALU's ability to handle both types of operations is crucial for executing computer programs and processing data efficiently.