Step 1: Understand average speed for round trip
Average speed for two equal distances with different speeds is given by:
\[
\text{Average speed} = \frac{2 \times \text{speed}_1 \times \text{speed}_2}{\text{speed}_1 + \text{speed}_2}
\]
Step 2: Substitute values
\[
= \frac{2 \times 40 \times 60}{40 + 60} = \frac{4800}{100} = 48 \text{ km/hr}
\]
Thus, Option (C) 48 km/hr is correct.