Step 1: Finding characteristic equation. \[ \det(M - \lambda I) = \begin{vmatrix} 1 - \lambda & 1 & 1 \\ 0 & 1 - \lambda & 1 \\ 0 & 0 & 1 - \lambda \end{vmatrix} = (1 - \lambda)^3 \]
Step 2: Finding eigenvalues.
- The only eigenvalue is \( \lambda = 1 \) with algebraic multiplicity 3.
- Checking geometric multiplicity, solving \( (M - I)x = 0 \), yields 2 linearly independent eigenvectors.
Step 3: Selecting the correct option. Since geometric multiplicity is 2, the correct answer is (C) 2.