Step 1: Use the sine and cosine rules
$\cos C=\dfrac{a^2+b^2-c^2}{2ab}$ and $\dfrac{\sin A}{\sin B}=\dfrac{a}{b}$.
Step 2: Substitute
The condition becomes $\dfrac{a^2+b^2-c^2}{2ab}=\dfrac{a}{2b}$, so $a^2+b^2-c^2=a^2$, giving $b^2=c^2$ and $b=c$. Option (C).
Final Answer:
We get $b=c$, option (C).
\[ \boxed{b=c} \]