Step 1: Concept
When the reflected and refracted rays are at $90^\circ$, the angle of incidence is the Brewster's angle ($\theta_B$).
Step 2: Meaning
According to Brewster's Law, $\tan(\theta_B) = \mu$.
Step 3: Analysis
Given $\mu = \sqrt{3}$, $\tan(\theta_B) = \sqrt{3} \implies \theta_B = 60^\circ$.
Step 4: Conclusion
The angle of incidence is $60^\circ$.
Final Answer: (C)