The correct answer is option 'C', which states that the play-way method of teaching in lower classes is based on psychological principles of development and growth.

Explanation:

1. Concept of Play-way Method:
The play-way method is an educational approach that focuses on learning through play. It encourages children to explore, experiment, and learn through hands-on activities and games. This method is commonly used in lower classes, as it recognizes the importance of play in a child's development.

2. Psychological Principles of Development and Growth:
The play-way method is based on various psychological principles that contribute to a child's development and growth. These principles include:

a) Active Learning: Children learn best when they are actively engaged in the learning process. The play-way method provides opportunities for children to actively participate and learn through play.

b) Experiential Learning: Children learn by doing and experiencing things firsthand. The play-way method allows children to learn through hands-on activities, which helps them understand concepts better.

c) Social Interaction: Play promotes social interaction among children, which is essential for their social and emotional development. The play-way method encourages collaboration, communication, and cooperation among children.

d) Cognitive Development: Play stimulates cognitive development by promoting problem-solving skills, critical thinking, and creativity. The play-way method provides opportunities for children to explore, discover, and think independently.

e) Emotional Development: Play helps children express and regulate their emotions. The play-way method creates a safe and supportive environment where children can freely express themselves and develop emotional intelligence.

f) Motivation and Engagement: Play is inherently motivating and engaging for children. The play-way method harnesses this intrinsic motivation and engages children in enjoyable activities that enhance their learning experience.

3. Application of Psychological Principles in Play-way Method:
The play-way method incorporates these psychological principles by designing activities and games that align with the developmental needs and interests of children. It provides a holistic learning experience that fosters the overall development of children.

In conclusion, the play-way method of teaching in lower classes is based on psychological principles of development and growth. It recognizes the importance of play in a child's learning journey and creates a conducive environment for their holistic development.