Step 1: Work-Energy Principle.
The work done by the frictional force \( F_f = \mu M g \) is equal to the change in kinetic energy of the block. The initial kinetic energy is \( \frac{P^2}{2M} \), and the final kinetic energy is 0 (since the block stops). The work done by friction is \( W = F_f \times d = \mu M g \times d \), where \( d \) is the distance.
Step 2: Applying the Work-Energy Theorem.
According to the work-energy theorem:
\[
W = \Delta K = 0 - \frac{P^2}{2M}
\]
Thus:
\[
\mu M g \times d = \frac{P^2}{2M}
\]
Solving for \( d \):
\[
d = \frac{P^2}{2 \mu M g}
\]
Step 3: Conclusion.
The distance covered by the block before it stops is \( \frac{P^2}{2 \mu M g} \), so the correct answer is (C).