The correct answer is option 'C', which states that the Panama Canal connects the Atlantic Ocean and the Pacific Ocean.

The Panama Canal is an artificial waterway that cuts across the Isthmus of Panama in Central America. It is a vital shipping route that provides a shortcut between the Atlantic and Pacific Oceans. The canal spans a length of approximately 51 miles, stretching from the city of Colon on the Atlantic side to Balboa on the Pacific side.

Here is a detailed explanation of why option 'C' is correct:

1. Geographical Location:
- The Panama Canal is located in Central America, specifically in the country of Panama.
- Panama is situated between North and South America, connecting the two continents.
- The canal is strategically positioned on the narrowest part of the isthmus, allowing ships to cross between the two oceans.

2. Purpose and History:
- The construction of the Panama Canal began in 1904 and was completed in 1914.
- The primary purpose of the canal was to provide a shorter and safer route for ships traveling between the Atlantic and Pacific Oceans.
- Prior to the canal's construction, ships had to traverse the treacherous Cape Horn at the southern tip of South America, which was time-consuming and dangerous.

3. Lock System:
- The canal features a lock system that raises and lowers ships to different water levels, allowing them to traverse the canal.
- There are three sets of locks: Gatun Locks on the Atlantic side, Pedro Miguel Locks in the middle, and Miraflores Locks on the Pacific side.
- These locks use gravity and water displacement to move ships through the canal, overcoming the difference in elevation between the two oceans.

4. Importance and Impact:
- The Panama Canal has had a significant impact on global trade and shipping.
- It has greatly reduced travel distances and costs for ships, allowing for more efficient and economical transportation of goods.
- The canal has facilitated international trade and contributed to the economic development of countries around the world.

In conclusion, the Panama Canal connects the Atlantic Ocean and the Pacific Ocean, providing a vital shipping route that has transformed global trade and transportation.