Step 1: Calculate the First Partial Derivatives
We first find the partial derivative of $f$ with respect to $x$ and $y$. Note that $g(y)$ and $g'(y)$ are treated as constants when differentiating with respect to $x$.
$$\frac{\partial f}{\partial x} = \frac{\partial}{\partial x} \left( g(y) + xg'(y) \right)$$
$$\frac{\partial f}{\partial x} = 0 + 1 \cdot g'(y)$$
$$\frac{\partial f}{\partial x} = g'(y)$$
$$\frac{\partial f}{\partial y} = \frac{\partial}{\partial y} \left( g(y) + xg'(y) \right)$$
$$\frac{\partial f}{\partial y} = g'(y) + x \cdot g''(y)$$
$$\frac{\partial f}{\partial y} = g'(y) + xg''(y)$$
Step 2: Calculate the Second Partial Derivative $\frac{\partial^2 f}{\partial x \partial y}$
Since $f$ is twice differentiable, the mixed partial derivatives $\frac{\partial^2 f}{\partial x \partial y}$ and $\frac{\partial^2 f}{\partial y \partial x}$ are equal (by Clairaut's theorem). We calculate the former:
$$\frac{\partial^2 f}{\partial x \partial y} = \frac{\partial}{\partial x} \left( \frac{\partial f}{\partial y} \right) = \frac{\partial}{\partial x} \left( g'(y) + xg''(y) \right)$$
Note that $g'(y)$ and $g''(y)$ are treated as constants when differentiating with respect to $x$.
$$\frac{\partial^2 f}{\partial x \partial y} = 0 + 1 \cdot g''(y)$$
$$\frac{\partial^2 f}{\partial x \partial y} = g''(y)$$
The correct option is (C).