Step 1: Understanding the linear transformation.
The linear transformation \( T \) acts on polynomial functions \( f(x) \) by subtracting \( x f'(x) \) from \( f(x) \). We need to determine the rank of \( T \), which is the dimension of the image of \( T \).
Step 2: Analyzing the action of \( T \).
Consider a general polynomial of degree at most 3: \( f(x) = ax^3 + bx^2 + cx + d \). Applying \( T \) to \( f(x) \), we get: \[ (T f)(x) = ax^3 + bx^2 + cx + d - x(3ax^2 + 2bx + c) \] Simplifying this expression, we see that the result is a polynomial of degree at most 3. This means the image of \( T \) is spanned by polynomials of degree 3 or less, so the rank of \( T \) is 3.
Step 3: Conclusion.
The correct answer is (C) 3.