Step 1: Use the given points and the condition of parallelism to the y-axis.
To find the equation of the plane, first calculate the direction ratios of the two points given:
\[
\text{Direction ratios} = (4 - 2, -5 - 3, 3 - 1) = (2, -8, 2)
\]
Since the plane is parallel to the y-axis, the direction ratio along \( y \) is zero.
Step 2: Write the equation of the plane.
The equation of the plane is given by:
\[
x - z = 1
\]
This corresponds to option (C).