Step 1: Definition of order of a differential equation.
The order of a differential equation is defined as the highest power of the derivative that appears in the equation.
Step 2: Analyze the given equation.
The given differential equation is:
\[
2x^2 \frac{d^2 y}{dx^2} - 3 \frac{dy}{dx} + y = 0.
\]
Here, the highest derivative is $\frac{d^2 y}{dx^2}$, which is the second derivative.
Step 3: Conclusion.
Since the highest derivative is the second derivative, the order of the differential equation is 2.
Final Answer: The correct answer is (C) $2$.