Step 1: Understanding the Concept:
Bitter rot is an economically important fungal disease of apple that damages fruit quality during the pre-harvest and post-harvest stages.
Step 2: Detailed Explanation:
The disease Bitter Rot of apple is caused by the ascomycete fungus {Glomerella cingulata (with its asexual/anamorph stage known as Colletotrichum gloeosporioides).
The disease exhibits characteristic sunken, circular, light-to-dark brown rotten spots on the fruit surface, which often release salmon-pink spore masses under humid conditions.
Step 3: Final Answer:
The disease of apple caused by Glomerella cingulata is Bitter rot, which is option (C).