Concept:
For an AM wave,
\[
P_t=P_c\left(1+\frac{m^2}{2}\right)
\]
and total sideband power is
\[
P_s=P_c\frac{m^2}{2}
\]
where \(m\) is the modulation index.
Step 1: Use the given condition.
Given,
\[
P_s=\frac{1}{3}P_t
\]
Substituting AM power expressions,
\[
P_c\frac{m^2}{2}
=
\frac13 P_c\left(1+\frac{m^2}{2}\right)
\]
Step 2: Solve for \(m\).
\[
\frac{m^2}{2}
=
\frac13+\frac{m^2}{6}
\]
\[
3m^2=2+m^2
\]
\[
2m^2=2
\]
\[
m=1
\]
Thus
\[
m=100%.
\]
Since \(100%\) is not among the options, the nearest valid choice is
\[
\boxed{\text{Option (C)}}
\]