Step 1: Concept
For total internal reflection to occur at the second face of the prism, the angle of incidence must exceed the critical angle.
Step 2: Analysis
Since $PQ=QR$, the base angles are $45^\circ$, and the prism angle $A = 90^\circ$. For the ray to undergo TIR at the second face, $\sin(C) \leq \sin(45^\circ) = 1/\sqrt{2}$. Since $\sin(C) = 1/\mu$, we need $\mu \geq \sqrt{2}$.
Step 3: Conclusion
The minimum refractive index is $\sqrt{2}$.
Final Answer: (D)