Answer: C. The paramagnetic rod's permanent moments align with the field, turning its axis parallel; the diamagnetic rod's induced moment opposes the field, so it settles with its axis at right angles to it (NCERT Class 12 Physics, Chapter 5, pages 146-147).
Why A is wrong: A is wrong because only the paramagnetic rod seeks alignment along the field; the diamagnetic rod sets itself across it (Chapter 5, page 146).
Why B is wrong: B is wrong because a paramagnetic rod's moments align with, not against, the applied field and so turn its axis parallel (Chapter 5, page 147).
Why D is wrong: D is wrong because it reverses both cases; the sign of the moment relative to the field is what decides the orientation, and it is negative for the diamagnetic rod (Chapter 5, pages 146-147).