Step 1: Assign numerical positions to each letter in the series.
A = 1st letter of the alphabet
C = 3rd letter of the alphabet
G = 7th letter of the alphabet
M = 13th letter of the alphabet
Step 2: Calculate the difference between consecutive terms.
Difference between C and A: $3 - 1 = 2$
Difference between G and C: $7 - 3 = 4$
Difference between M and G: $13 - 7 = 6$
Step 3: Identify the pattern in the differences.
The differences are 2, 4, 6. This is an arithmetic progression where each subsequent difference increases by 2.
Step 4: Determine the next difference in the pattern.
Following the pattern (2, 4, 6), the next difference should be $6 + 2 = 8$.
Step 5: Calculate the numerical position of the missing term.
Add the next difference (8) to the numerical position of the last given letter (M = 13):
$13 + 8 = 21$
Step 6: Convert the numerical position back to a letter.
The 21st letter of the alphabet is U.
The missing term is U.
The final answer is $\boxed{\text{(2)}}$.