The correct answer is option 'C', Guptas.

The 'Panchatantra' is an ancient Indian collection of animal fables that is believed to have been written during the Gupta period. The Gupta Empire was an ancient Indian empire that existed from around 320 to 550 CE. It was known for its significant contributions to art, science, and literature.

Now, let's delve into the details of the Panchatantra and its association with the Gupta period:

1. Panchatantra: The Panchatantra is a collection of interrelated animal fables that offer moral lessons and practical wisdom. It is believed to have been written in Sanskrit by a scholar named Vishnu Sharma. The exact date of its composition is uncertain, but it is generally believed to have been written around the 3rd century CE.

2. Gupta Period: The Gupta Empire was a golden age in Indian history, known for its prosperity and cultural achievements. It was during this period that ancient Indian art, literature, and science reached their zenith. The Guptas patronized scholars and artists, leading to the development and preservation of various literary works.

3. Literary Flourishing: The Gupta period witnessed a significant literary flourishing, with scholars producing works in various fields. Sanskrit literature reached its peak during this time, and several important works were composed. The Panchatantra is one such notable work that is associated with this period.

4. Patronage of the Guptas: The Gupta rulers were known for their patronage of scholars, artists, and intellectuals. They encouraged the development of literature and provided support to scholars like Vishnu Sharma, who composed the Panchatantra. The empire's patronage played a crucial role in the preservation and dissemination of ancient Indian literature.

5. Influence and Legacy: The Panchatantra gained widespread popularity and has been translated into numerous languages over the centuries. Its stories and moral lessons continue to be relevant and are enjoyed by people of all ages. The influence of the Panchatantra can be seen in various subsequent literary works, both in India and across the world.

In conclusion, the 'Panchatantra' was written during the Gupta period, a golden age in Indian history known for its cultural achievements. The Gupta rulers' patronage of scholars and literature played a significant role in the preservation and dissemination of this ancient Indian collection of animal fables.