Step 1: Ammeter conversion.
When converting a moving coil galvanometer into an ammeter, a shunt resistance \( S \) is added in parallel with the galvanometer to allow more current to pass through the ammeter.
Step 2: Expression for total resistance.
The total resistance of the ammeter formed is given by the formula for two parallel resistors:
\[
R_{\text{total}} = \frac{SG}{S + G}
\]
where \( G \) is the resistance of the galvanometer and \( S \) is the shunt resistance.
Step 3: Conclusion.
The correct resistance is \( \frac{SG}{S + G} \), so the correct answer is (C).