According to the Census 2001, a literate person is one who __________.
A. Can read and write his/her name
B. Can read and write any language
C. Is 7 year old and can read and write any language with understanding
D. Knows 3 Rs (reading, writing, arithmetic)

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Hint: The Census of India is held every decade. This has been started since 1871. In series of censuses, the 2001 Census of India was the 14th.

Complete Answer:
The results of this census were: the population of India was 1,028,737,436 which consist of 496,514,346 females and 532,223,090 males. When it comes to the religion demographics, $80.45\% $ were Hindus ($82.75$ crore), Muslims were $13.4\% $ ($13.8$ crore), Christians were $2\% $ , Sikh were $1.89\% $, Buddhist were $0.74\% $, Jain were $0.46\% $, Animist and the rest were the people of other religions of about $0.43\% $. Hindi is the language that is most widely spoken in the Northern parts of India. $53.6\% $ of the Indian population knows Hindi according to the 2001 census. Out of those, $41\% $ of them declared Hindi as their official language or mother tongue. English was known by $12.5\% $ of Indians according to the census 2001. The number of bilingual speakers in India was $25.50$ crore, which was $24.8\% $ of the total population of the 2001 census. Papua New Guinea is a country with the highest number of languages i.e., 839. India is in second place with 780 languages. According to the 2001 census, a literate person is one who is 7 years old and can read and write any language with understanding.

Thus, option (C) is correct.

Note: Census is the official count or the survey, especially of a population. In the 2001 census, around 700,000 people did not state their religion. Compared to the 1991 census, the population was increased by $21.5\% $ i.e., 182,310,397.