Step 1: Understanding the mutual inductance.
For two co-planar coils, the mutual inductance \( M \) depends on the geometrical configuration of the coils. It is proportional to the square of the radius of the larger coil \( R_1 \) and inversely proportional to the radius of the smaller coil \( R_2 \), assuming \( R_1 \gg R_2 \). This relationship can be derived from the formula for mutual inductance in terms of coil radii.
Step 2: Conclusion.
The correct answer is option (C) because the mutual inductance is proportional to \( \frac{R_1^2}{R_2} \).