Step 1: Understanding the Question:
This question tests knowledge of deforestation rates in India.
Step 2: Detailed Explanation:
The annual rate of deforestation in India is approximately 8.6%.
10.7% (A): Too high.
4.1% (B): Too low.
1.7% (D): Too low.
Thus, the correct answer is 8.6%.
Step 3: Final Answer:
Thus, the annual rate of deforestation in India is 8.6%, which corresponds to option (C).
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