Step 1: Recall that a reducing agent is a substance that gets oxidised while reducing another substance.
Step 2: Examine option (C).
In this reaction, silver oxide (Ag$_2$O) is reduced to metallic silver (Ag).
Step 3: Hydrogen peroxide (H$_2$O$_2$) is oxidised to oxygen (O$_2$).
Step 4: Since H$_2$O$_2$ undergoes oxidation and causes reduction of Ag$_2$O, it acts as a reducing agent in this reaction.
Step 5: In the other options, H$_2$O$_2$ acts as an oxidising agent.