Step 1: Check acidity:
Ethanol has $pK_a \approx 16$, close to water at 15.7, so it releases almost no $\text{H}^+$.
Step 2: Check basicity:
The oxygen lone pair can take a proton only from very strong acids, not from water.
Step 3: Result:
The aqueous solution stays at pH close to 7. Alcohols are neutral, option (C).
Final Answer:
Alcohols are neutral in water.
\[ \boxed{\text{(C) }\text{Neutral}} \]