Explanation:

MICR stands for Magnetic Ink Character Recognition. It is a technology used primarily in banking to verify the legitimacy of paper documents, especially checks, by recognizing characters printed with magnetic ink. The 'C' in MICR specifically refers to 'Character'. Options (1) 'Code', (3) 'Colour', and (4) 'Computer' are incorrect; while related to the process, they are not what the 'C' in the acronym represents.