Step 1: Idea:
Oxides of metals near the diagonal between metals and non-metals are amphoteric. Aluminium is a good example.
Step 2: Reasoning:
Aluminium oxide dissolves in hydrochloric acid and also in sodium hydroxide, which is the test for amphoteric nature. Neutral oxides such as CO do neither. So the answer is amphoteric.
Final Answer:
$\text{Al}_2\text{O}_3$ is amphoteric, option (C).
\[ \boxed{\text{Amphoteric}} \]