Explanation:

The term 'Consumption of Fixed Capital' refers to the depreciation or wearing out of fixed assets that are used in the production process. It represents the amount of capital that is used up or consumed in the production of goods and services.

Importance of Consumption of Fixed Capital:
- It is an important component in the calculation of Gross Value Added (GVA), which measures the contribution of an economic sector or industry to the overall economy.
- It helps in determining the net value of output by taking into account the depreciation of fixed assets.

Replacement of the term:
The term 'Consumption of Fixed Capital' can be replaced by the term 'Depreciation' with respect to Gross Value Added (GVA).

Reasons for choosing 'Depreciation':
- Depreciation is the process of allocating the cost of an asset over its useful life.
- It represents the reduction in the value of an asset over time due to wear and tear, obsolescence, or other factors.
- Just like 'Consumption of Fixed Capital', 'Depreciation' also reflects the amount of capital that is used up or consumed in the production process.
- Both terms are used interchangeably in economic analysis and accounting.

Other options:
- Deterioration: This term refers to the process of becoming progressively worse or deteriorating. While fixed assets may deteriorate over time, it does not capture the concept of capital consumption.
- Deflation: This term refers to a decrease in the general price level of goods and services. It is not directly related to the concept of capital consumption.
- Devaluation: This term refers to a deliberate decrease in the value of a currency relative to other currencies. It is unrelated to the concept of capital consumption.

Therefore, the correct option is 'Depreciation' (option C) as it is the most suitable replacement for the term 'Consumption of Fixed Capital' with respect to Gross Value Added (GVA).

Consumption of fixed capital (CFC) is a term used in business accounts, tax assessments and national accounts for depreciation of fixed assets. CFC is used in preference to "depreciation" to emphasize that fixed capital is used up in the process of generating new output, and because unlike depreciation it is not valued at historic cost but at current market value (so-called "economic depreciation"); CFC may also include other expenses incurred in using or installing fixed assets beyond actual depreciation charges. Normally the term applies only to producing enterprises, but sometimes it applies also to real estate assets. CFC refers to a depreciation charge (or "write-off'') against the gross income of a producing enterprise, which reflects the decline in value of fixed capital being operated with. Fixed assets will decline in value after they are purchased for use in production, due to wear and tear, changed market valuation and possibly market obsolescence. Thus, CFC represents a compensation for the loss of value of fixed assets to an enterprise. CFC tends to increase as the asset gets older, even if the efficiency and rental remain constant to the end. The larger the depreciation write-off, the larger the gross income of a business. Therefore, the correct answer is (c).