Step 1: Moment of inertia of a single sphere.
The moment of inertia of a single sphere about an axis passing through its center is given by:
\[
I_{\text{sphere}} = \frac{2}{5} m R^2
\]
where \( m \) is the mass and \( R \) is the radius of the sphere.
Step 2: Moment of inertia of spheres at the corners.
Each sphere is placed at a corner of the square, and the axis of rotation is along one side of the square. For each sphere, we use the parallel axis theorem to calculate the moment of inertia about the axis passing through the side of the square:
\[
I_{\text{total}} = I_{\text{sphere}} + md^2
\]
where \( d \) is the distance from the center of the sphere to the axis. In this case, \( d = \frac{L}{\sqrt{2}} \).
Step 3: Calculate the total moment of inertia.
There are four spheres, and we calculate the total moment of inertia by summing the contributions from each sphere:
\[
I_{\text{total}} = 4 \left( \frac{2}{5} MR^2 + M \left( \frac{L}{\sqrt{2}} \right)^2 \right)
\]
Simplifying:
\[
I_{\text{total}} = 4 \left( \frac{2}{5} MR^2 + \frac{ML^2}{2} \right)
\]
\[
I_{\text{total}} = \frac{8}{5} MR^2 + 2ML^2
\]
Step 4: Conclusion.
Thus, the moment of inertia of the system about any side of the square is \( \frac{8}{5} MR^2 + 2ML^2 \), which corresponds to option (C).