The correct answer is option 'C', Part VIII of the Indian Constitution deals with Union Territories.

Explanation:
The Indian Constitution provides for a federal structure with a division of powers between the Union government and the state governments. However, there are certain areas that are directly administered by the Union government, known as Union Territories. The provisions related to Union Territories are mentioned in Part VIII of the Indian Constitution.

Here is a detailed explanation of Part VIII and its provisions regarding Union Territories:

1. Definition of Union Territories:
- Part VIII of the Indian Constitution begins with Article 239 which defines Union Territories as territories that are directly administered by the President through an Administrator appointed by him.

2. Administration of Union Territories:
- Article 239A provides for the creation of a separate category of Union Territories called "Union Territories with a Legislature".
- It empowers the Parliament to create a legislature for certain Union Territories (currently, only Delhi and Puducherry have legislatures).
- The Union Territories without a legislature are directly administered by the President through an Administrator appointed by him.

3. Powers and Functions of Administrator:
- Article 239B provides for the appointment of an Administrator by the President for Union Territories.
- The Administrator is responsible for the administration of the Union Territory and exercises executive powers on behalf of the President.

4. Legislative Assembly and Council of Ministers:
- Article 239AA deals specifically with the Union Territory of Delhi.
- It provides for the creation of a Legislative Assembly and a Council of Ministers for Delhi.
- The Legislative Assembly has the power to make laws on all matters within the powers of the Delhi government, except those related to public order, police, and land.

5. Other Provisions:
- Part VIII also contains provisions regarding the High Court for Union Territories, which are mentioned in Article 241.
- It empowers the Parliament to establish a common High Court for two or more Union Territories or a separate High Court for any Union Territory.

In conclusion, Part VIII of the Indian Constitution deals with the establishment, administration, and powers of Union Territories. It provides for the appointment of Administrators, creation of legislatures for certain Union Territories, and other related provisions.