The correct answer is option 'C) Interface unit'.

Explanation:
The interface unit is the component of the computer that is used to resolve the difference between the CPU and the peripheral device. Let's understand why this is the correct answer.

- CPU and Peripheral Devices:
- The CPU (Central Processing Unit) is the primary component of a computer responsible for executing instructions and performing calculations.
- Peripheral devices are external devices connected to the computer, such as a keyboard, mouse, printer, etc. These devices provide input to the computer or receive output from it.

- Communication between CPU and Peripheral Devices:
- The CPU and peripheral devices communicate with each other by exchanging data and control signals.
- However, there can be differences in the way data is processed, formatted, or transmitted between the CPU and peripheral devices.
- These differences can include variations in data formats, protocols, timing, voltage levels, etc.

- Role of Interface Unit:
- The interface unit acts as a mediator or translator between the CPU and peripheral devices.
- It handles the conversion or adaptation of data and control signals between the two, ensuring compatibility and proper communication.
- The interface unit understands the specific requirements of each peripheral device and converts the data and control signals from the CPU into a format that the device understands.
- Similarly, it also converts the data or signals from the peripheral device into a format that the CPU can process.

- Function of Interface Unit:
- The interface unit manages the flow of data and control signals between the CPU and peripheral devices.
- It provides the necessary electrical, mechanical, and logical connections between them.
- It may include various components such as buffers, drivers, adapters, converters, etc., to facilitate the communication.
- The interface unit also handles error checking, data synchronization, and other related tasks to ensure reliable communication.

In conclusion, the interface unit is responsible for resolving the differences in data processing, formatting, and transmission between the CPU and peripheral devices. It acts as a bridge between them, converting the data and control signals to ensure proper communication and compatibility.