Step 1: Understanding the Concept.
Instead of working with the general formula right away, it helps to test the claim with an actual numeric example, since a step-down transformer always has more primary turns than secondary turns.
Step 2: Key Formula or Approach.
Take a transformer with turns ratio $a = \frac{N_1}{N_2} = 4$, which is a valid step-down ratio (primary voltage is 4 times the secondary voltage). The rule for shifting an impedance from secondary to primary is $Z_2' = a^2 Z_2$.
Step 3: Detailed Explanation.
Suppose the load on the secondary is $Z_2 = 10\ \Omega$. Referred to the primary, this becomes
\[ Z_2' = a^2 Z_2 = (4)^2 \times 10 = 16 \times 10 = 160\ \Omega \]
Comparing the two: $Z_2' = 160\ \Omega$ is much larger than $Z_2 = 10\ \Omega$. This is not a coincidence of the numbers chosen. Since $a = N_1/N_2 > 1$ for any step-down transformer (more primary turns than secondary turns), the multiplying factor $a^2$ is always greater than 1, so $Z_2'$ always comes out bigger than $Z_2$, regardless of which specific step-down ratio is used.
Checking the other options against this example confirms they fail: $Z_2' \neq Z_2$ rules out (A), and $Z_2'$ is nowhere close to a fraction of $Z_2$ (it is 16 times bigger, not between $0.5Z_2$ and $Z_2$, and not less than $0.5Z_2$), which rules out (B) and (D).
Step 4: Final Answer.
For a step-down transformer, the impedance referred to the primary is always scaled up by a factor greater than 1, so $Z_2' > Z_2$, matching option (C).
\[ \boxed{Z_2' > Z_2} \]