Step 1: Sign of the susceptibility
For diamagnets, the induced magnetisation opposes the applied field, so $\chi$ is negative. The line must be below the temperature axis.
Step 2: Temperature dependence
Thermal motion destroys the alignment of permanent dipoles in a paramagnet, giving $\chi=\frac{C}{T}$. A diamagnet has no permanent dipoles, so heating does not change $\chi$ much.
Step 3: Match the figure
Only the graph with a flat line under the axis fits both facts. That is the third picture, option (C). The curve of option (B) is the Curie law of a paramagnet, option (A) is a ferromagnet curve, and option (D) has the wrong sign.
Final Answer:
Option (C) is correct.
\[ \boxed{\text{Option (C)}} \]